Advice for Buying a Restaurant and Selling a Restaurant

The 5 Worst Decisions You Can Make when Selling Your Restaurant

Posted by Robin Gagnon on Sep 10, 2018 12:11:31 PM

Interesting in selling your restaurant?  Here are five the absolute worst decisions you can make to keep the deal from happening, torpedo a would-be transaction and shut buyer’s down cold once they do express interest.  Most people only tell you the sugar-coated version of how to sell a restaurant.  We’re digging into the down and dirty advice from the We Sell Restaurants.  We’ve seen it all, but these five instances are the key reasons a deal gets sidelined and buyers move on.

Ignore the Broker’s Advice for Listing Price

The restaurant broker performing the valuation on your restaurant is relying on comparable sales, multiples based on the market conditions, lending approvals and years of experience to set the selling price.  As the seller, you’re relying on what you “need” or “want” for the business. Buyers are not interested in what you need from the sale or what you want for the business.  They are interested in obtaining a business in line with current market conditions for similar businesses with comparable earnings.

When you tell the restaurant broker that you want a price of $295,000 on a listing valued at $225,000, you are setting up a scenario for disappointment.  Make the decision up front on accepting advice or pay the price in lost months of opportunity and wasted marketing efforts.     

Forget about Operations Once Your Business is ListedThe 5

Taking your eye off the ball is never a good idea, especially when selling a restaurant.  Just because your business is listed with a Restaurant Broker, that doesn’t mean the deal is done.  Typically, you have months of waiting before the closing takes place.  It’s not the time to slack off, in fact, it’s time to up your game.  You will have buyers visiting as secret shoppers and determining if they want to move forward. 

We coach buyers to understand that they are always buying a work in progress and any improvements will lead to a better bottom line for them.  However, if last years’ service record was impeccable and you’re shorting people on night shift to save a few pennies, it will show.  That leads to buyer questions.  Buyer questions lead to negotiated deal terms and ultimately, impact the value of your business.  Decide now that you will keep the operations on track prior to listing your restaurant for sale if you want the best offers.   

Forget About Driving Sales; They Don’t Matter that Much, do They?

Another surefire way to torpedo a sale and keep from selling your restaurant is to start posting negative sales comps.  Positive sales are a requirement, not a suggestion.  Above all, stop the bleeding somehow, if you start heading into negative territory.  Figure out a way, whether through promotions, advertising, delivery, catering or somehow, to get your sales posted in positive territory until the restaurant is sold.

As restaurant brokers, we work with lenders who routinely deny loans because of sales trending or help sellers craft messages about why the trend is dropping. Don’t put yourself in this box unless you’re not that interested in selling your restaurant.

Stop Paying your Taxes

Here’s another bad decision if you want to shut down all the momentum for selling your restaurant.  Begin ignoring the tax man and the payments for payroll or sales tax.  If you think these items are not going to surface before the closing, you are dead wrong.  All attorneys preparing closing documents should be doing a UCC (Uniform Commercial Code) Lien Search.  That search will uncover any unpaid debts and liens.  Since taxing authorities are usually the first to file, these liens will show up. 

Any liens will have to be paid out of the closing or settled in some manner before you can sell your restaurant.  The fact that the liens are there will raise serious doubts in the mind of any buyer.  Can you be trusted if you don’t pay your taxes?  What other bills are out there waiting to surface? These are the doubts raised in a buyer’s mind when taxes aren’t paid.  This tactic is a surefire way to drum up a lot of wasted penalties and interest along with driving away buyers.

Be Less Than Honest, About Anything

There’s really nothing you can tell a restaurant broker that he hasn’t heard before.  What he or she can’t help you with, however, is what they don’t know.  If a pipe breaks and you close the restaurant for two weeks while it’s in contract, that’s a very material matter that should be disclosed.  If your wife caught you with the night waitress in a compromising position, it’s embarrassing and should be no one’s business but if a buyer is likely to hear about it, the broker should know. 

Any situation can be managed if the broker is in the loop.  Making the decision to be less than honest or hide something and it will certainly surface at the worst possible time.  In most cases, it’s another surefire way to keep from selling your restaurant.

There are, unfortunately, many great decisions you can make to help sell your restaurant.  Don’t sabotage the sale of your restaurant and avoid these five decisions for a successful transfer.  Need help selling your restaurant?  Reach out to us at the link below.

 

Topics: Selling a Restaurant

Myths Uncovered About Selling a Restaurant That's Losing Money

Posted by Robin Gagnon on Aug 28, 2018 11:30:00 AM

Selling a restaurant that isn’t making money...is it even possible?  Is certainly is.  Plenty of books written in the marketplace will tell you that if your business isn’t cash flow positive or if the liabilities exceed the assets, then you need to “wait” and improve your business. That’s a myth.  In today’s market, We Sell Restaurants is selling plenty of businesses that are losing money, proving that this thinking is out of date.    

Summer Neon Tropical Music Album Cover

Selling a restaurant without cash flow means selling a business that is losing money for the current operator.  It may need a concept change, a menu adjustment or yes, even a leadership swap, but this location can be a winner for the next person owning the business.  That’s why it’s a myth that no one will want the business if it’s not earning a return today. After all, one’s man’s trash is another man’s treasure. Even if your restaurant is not making money today, it represents an opportunity for someone else tomorrow.

A restaurant that is losing money is referred to as an “Asset Sale.”  It should be marketed differently than a cash flow positive business but it certainly can sell and most importantly, it needs to sell now.  In fact, that’s the most critical aspect when you have a restaurant losing money.  You don’t have time to waste.  If you concept isn’t working, you need to sell before additional months of rent stack up that you can’t pay or new bills are created.  This scenario is called an asset sale and we will help show you how you can sell your restaurant in this scenario by packaging what you do have for sale in a powerful way to attract buyers. 

Here’s the difference between a cash flow positive business earning a return for any buyer and an asset sale.  A restaurant seller is offering one of two things to would-be buyers:

  • If your business is cash flow positive and generates a living for yourself and your family, you’re selling a job.
  • If your restaurant is losing money, needs a concept change or just isn’t generating enough income to provide for someone else, you’re selling used equipment.

It is a myth that buyers only want businesses with cash flow.  Many creative restaurant buyers just want to take over your space and equipment, then re-brand to their own concept as a shortcut to success.  What is not a myth is their need for information.  While you love your restaurant for what you know, a buyer will want your restaurant for what you can prove.  In the case of an asset sale, it is critical to understand what you’re putting on the market when it comes to getting the most money for your business and selling a restaurant in the shortest period of time.   

The process to prepare an asset sale for marketing are the same whether you decide to sell the restaurant on your own or use the services of a restaurant broker.  This article will prepare you to maximize the return, even if you are selling at a loss.  Today’s sophisticated restaurant buyer is demanding.  Prepare up front for their requests and you will see the transaction move to the closing table more quickly.

Any listing for an asset sale should focus on the following:   

Opportunity:  While we cannot put a specific price on opportunity, it can be considered when marketing an asset sale.  Most buyers want to ignore this item as they want black and white numbers.  However, if you have a restaurant location with an under-market lease in an up-trending market, you do have opportunity to factor that into the pricing.  It is a myth that opportunity can never be priced into the equation.

Equipment List:  The single more important item in listing a restaurant for sale losing money is to develop a strong equipment list.  Pull the list together in either electronic or paper format.  For any item valued over $5000, include the serial numbers.  For any major pieces, include the model number. Selling your restaurant with the equipment is a shortcut to success for someone else.  It’s a myth that this is instantly devalued as restaurant equipment has many years of life.

Financial Data:  Even though a buyer is not purchasing established cash flow, count on them requesting financial information.  At a minimum be prepared to provide sales data by month for more than one year.  That gives them insight into the potential in this location even with a change of concept.

Remember, the buyer is asking you to prove the value of the lease or franchise, the transferability of the lease or franchise along business, along with physical assets they are buying along with any liabilities they are incurring. It is a myth when selling a restaurant to believe you won’t have to show all of the following items that should satisfy most requests.

  • Two Years of sales by month
  • Copy of the lease
  • Copy of the franchise agreement (if you are selling a franchise)
  • List of the furniture, fixtures and equipment that transfer in the sale
  • Copies of any ongoing obligations (POS rental agreements, leases for equipment to be assumed)

With these data points, a value can be determined for the business, attracting a buyer.  The key to selling a restaurant as an asset sale is to quickly stop the bleeding, eliminate any ongoing liability for the lease or franchise and get a deal in contract quickly.  It is a myth that there is no value and no opportunity for selling a restaurant if it’s not earning a return today. 

Interesting in selling a restaurant?  Contact us at the link below. 

 

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Topics: Selling a Restaurant

The 5 Things No One Told You to Ask about Selling Your Restaurant

Posted by Robin Gagnon on Aug 21, 2018 12:56:24 PM

Ready to sell your restaurant and looking for the right resource?  There are plenty of people out there selling businesses.  How do you know which one right for selling your restaurant?  Here are questions to use on broker including the 5 things one every told you to ask before.  

If the broker can’t address these to your satisfaction, odds are, he or she is the wrong fit. Starting with the wrong resource adds delays, time and money to the process.  Most sellers want to sell for the most money in the shortest time.  Ask these 5 things and you’ll know who can get the job done. As a seller, you should apply the process of due diligence on your broker long before they ever sell your restaurant.   

Your Guide to Seeds (1)

The simplest most basic question deals with experience.  Ask the broker exactly how many restaurants they have sold.  Seems easy but it constantly surprises me that sellers don’t require this information.  After all, it doesn’t’ matter how many daycare, dry cleaner, liquor store and car wash properties the broker has handled.  You are interested in how many restaurants he or she has sold.  Why?  A specialist has an inventory of buyers already focused on what you’re selling.  Why go fishing in the wrong pond?  Go where the fish are biting and the bait is your business.  That means a broker who sells lots of restaurants has buyers interested in the food service industry.

Figure out how successful they are at selling restaurants.  After all, it doesn’t matter how many restaurants they have listed.  You want to know how successfully they sell. For that, it comes down to one single metric.  Ask the broker for their closing percentage. No one told you before, but this is a statistic that any reputable broker tracks.  It is a clear measure of their success in selling a restaurant. It’s the count of restaurants sold divided by the count of restaurants listed. 

We were shocked to hear at a recent industry function that only one in three businesses listed by one major franchise brand will make it to the closing table.  Why would you list with someone with a batting average this low?  Anyone who wishes to sell your restaurant should be able to tell you, in addition to the days on market, an average time to closing, along with the percentage of transactions that sell. If they can’t, you’re dealing with a rookie.  While that may be okay in baseball and there are certainly stars among the start-ups, it’s a good plan to work with a seasoned professional who closes 80-90 percent of their deals.

No one may tell you to ask this question but it’s critical.  How many other brokers do you cooperate with and what groups do you belong to?  Industry groups often share listings with one broker working the “sell” side and another working the “buy” side.  Your chances of selling dramatically increase when the listing is exposed to more brokers. Remember, you want the greatest exposure.

Selling your restaurant is not a one-man sport.  What’s the team surrounding your broker and what’s his or her policy on co-brokerage? Is he or she is not a member of the professional organizations that share listings and work with buyers and sellers nationwide, you will decrease your potential to sell your restaurant.

it’s good business practice to ask your broker about their level of education, degrees, industry knowledge and any certifications. While it is not required to have advanced education to sell your restaurant, those with strong industry credentials have dedicated time, money and energy to their education. For many, this commitment to education and follow through puts them in the rank of top producers. 

Given a choice between someone with advanced education and someone without, why bet on the uninformed?  For the brokerage industry, a Certified Business Intermediary designation or CBI is the industry gold standard of knowledge and experience that’s been tested.  Less than 500 individuals worldwide hold this designation so a broker that has these credentials is already at the top of their game.

Lastly, ask a broker how they will be investing in your restaurant for sale?  Where will it be marketed?  Will there be upgraded placement?  Who will receive email blasts on the listing and how frequently?   What are your marketing channels for exposing the business to interested parties?  A marketing plan tells you they have a recommendation and road map for attracting buyers.  Without this, they are simply holding the listing until someone comes in the door looking.

There are clear measurements and ways to quantify the quality of a restaurant broker no one bothers to share.  Now you have them.  Take advantage of these questions to score someone who will get you the most money for your restaurant in the shortest time.

 

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Topics: Selling a Restaurant

Selling Restaurants by the Numbers – Great News – It is Basic Math

Posted by Robin Gagnon on Aug 6, 2018 11:33:35 AM

It’s true.  Selling restaurants is tied directly to basic math and not even tough math at that.  It’s the basics of addition, subtraction and multiplication you learned in fifth grade (at least that’s when this restaurant broker learned it – I’m totally not sure not sure about this common core math they’re teaching now).   

Selling restaurants by the numbers means starting with the profit and loss statement.  That’s why restaurant brokers like ours at We Sell Restaurants will request the latest financial data.  At this point you may be asking, what about sales?  Sales are actually immaterial to the valuation but may impact lending if they are trending negatively for multiple years.  Despite anyone trying to tell you otherwise, understand that sales are not a measure of earnings, they are simply a denominator (remember that fifth grade math again?) in evaluating all expenses as a rate to sales.

Subtraction

Once the profit and loss statement is on the table, the simple math begins.  We begin by subtracting certain expense from the P&L which increases the profit.  Why would we do this as restaurant brokers?  Because selling restaurants by the numbers means we need a clean earnings number without interest, taxes, depreciation and amortization.  That’s commonly known as EBITDA in the in the financial community.  We remove these items or subtract them to state a true earnings calculation for a new buyer. 

Here’s why.  After all, he or she will not have your debt structure so removing your interest makes sense when you consider it from this perspective.  He or she will have a different taxable basis for the purchase which means your depreciation and amortization is also immaterial.  After all, depreciation and amortization are non-cash estimates of a write off of your usable equipment and or intellectual property to allow for repurchase.  They decrease income on your P&L but are never really cash out of pocket to either you or the buyer. selling restaurants by the numbers

Addition

After we do our subtraction, we begin our addition when selling restaurants by the numbers.  We add back the earnings of a single person managing the business on a day to day basis.  That may be a restaurant seller or it may be a manager.  The key here, in selling restaurants by the numbers is that we can ONLY add back one full time salary.  That means a number of scenarios have to be considered.

Before adding back this salary.  A few examples are outlined below to show how this works to recast earnings on this basis or use our basic addition or subtraction skills.

Example 1:  Absentee owner making $50,000 in salary and a Manager in place making $35,000. 

This example of selling restaurants by the numbers creates an addition to earnings of $85,000.  Why is that?  We assume the new owner will come in and take over the roles, responsibilities, and thus the pay to operate the store personally.  The absentee amount is added back because that will also go to a new owner.

Example 2:  A husband and wife work in the store and make a combined amount of $75,000. 

In this case, we can only add back ONE salary.  A new owner cannot take over the roles of two people.  He or she will have to hire someone to do the work of the second operator.

Example 3:  An owner todays works full time in the business and takes no salary.

There is no add back for owner salary.  The same scenario would exist for a single owner/operator.  He could choose to deflect bottom line earnings on the books to salary but the amount of money remains the same.

Multiplication

Now our math expands to multiplication.  This is when we take the previously calculated number of the bottom line P&L minus interest, taxes, depreciation and amortization plus the appropriate owner earnings addback and then we multiple this by a market variable for this restaurant. Now we’ve used all our basic math skills of addition, subtraction and multiplication. 

In selling restaurants by the numbers, everyone immediately asks for the “multiple’ as if it were the answer key to today’s pop quiz in math class.  The answer is not straightforward and it is not a “one size fits all” scenario.  If the business on the market is a franchise or has six figure earnings, the multiplier goes up. If it’s an ice cream store being sold in February, the multiple could go down.  A strong restaurant broker will have access to comps, market level multiples and information to arrive at the right number.

That’s it.  Basic math gets you the answers you need for selling restaurants by the numbers.  Want to know what your restaurant is worth?  Reach out to us online at this link or click below.

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Topics: Selling a Restaurant

Fast Track Selling Your Restaurant – Why a Restaurant Broker is a Good Idea

Posted by Robin Gagnon on Jul 30, 2018 9:50:48 AM

Want to fast track selling your restaurant but not sure where to start?  Read on for these tips from We Sell Restaurant to get what every seller wants from the transaction - the most money in the shortest period.  A fast sale means the services of a restaurant broker and for most sellers, at all costs, avoid trying to do it yourself.  Here’s why.Renewing Vows Social Media Graphic

You’re Emotionally Invested.  You built your business from scratch and watched it grow and prosper.  This is more than a business to you.  It has taken care of your family’s needs for often, many years.  When selling, there will doubtless be moments of regret and emotional attachment even if you are selling for all the right reasons.

Buyers may be Insulting or Augmentative.  It’s human nature.  You’re on two sides of a deal.  A buyer may try to establish fault with your restaurant to justify their offer price.  If a restaurant buyer says something like, “I ate here last night, and service was terrible” when you know your wife was running the front of house, this deal is going nowhere fast.   Selling your restaurant through a third party means they filter this information and work on focus on representing the transaction minus the emotions.  This scenario is a lot different than if you try to sell your restaurant on your own.

Your talent is best used running a restaurant.  A professional restaurant broker’s talent lies in selling the restaurant.  You have taken your dream and managed to make it grow and prosper.  You are likely excellent at sales and operations or taking a turn in the kitchen. On the other hand, satisfying the demands of buyers may not be at the top of your skill set.

A restaurant buyer is going to be focused on the accounting details and bookkeeping records to help them with making an offer. The buyer could care less whether they show up during your busiest time such as dinner on Friday night.   As a result, you will find yourself doing more of what you are less good at and less of what you are very good at which is running the restaurant. 

Restaurant Brokers are Deal Makers.  Remember that just because you received an offer doesn’t mean your restaurant is soldReaching an offer means the buyer and seller agree on is the easiest part of a transaction and is only the beginning of the process.  Buyers and sellers that reach consensus on a price are not difficult to put together.  The tough part is holding the transaction together until closing which is where a restaurant broker can be of tremendous help with seeing the deal through to completion. 

The restaurant broker’s work begins once the buyer and seller agree on an offer.  Shortly after, the buyer will begin to put every element of the transaction under a microscope when the reality begins to hit that he is in the deal for the long haul.  At this point there are numerous opportunities for the deal to collapse post contract which is why it is necessary to have a restaurant broker working with you.

 The restaurant broker is working at reassuring the buyer that the unpaid lien is not a disaster and can be resolved at closing.  He or she is also helping the seller locate two-year old tax returns with a stamp on them from the Internal Revenue Service and assisting the seller with the sales tax clearance letter from the state. 

 On the other side, the broker is working with the buyer when he discovers there is a list of items on the inspection results that need to be fixed and with the seller when he discovers the franchise wants a list of improvements before they will transfer.  The restaurant broker is taking the heat from all parties to the deal and keeping it in check to get them to the closing table.

 Brokers have Access to Contract Forms and Legal Resources

 Preparing a contract can have its own set of issues.  What’s included?  What’s not?  Who keeps the security deposit or pays for inventory or transfer fees?  The last thing you want to do is engage an attorney and have countless costs and fees with no guarantee it will close.  We Sell Restaurants and many other brokers, have forms and documents that can expedite this process at no fee to you.  Why would you want to take the risk of handling this on your own? This is clearly a way to fast track a deal for selling your restaurant.

 Restaurant Brokers have Lending Contacts

 Getting the most money for your business means you frequently need a lender engaged.  The process of lending can be lengthy and confusing for the inexperienced while it’s a daily occurrence for a broker. He or she will have immediate contacts, processes for approvals and support for the forms and information requested by the bank and other parties. For our firm, we can fast track any loan application, gaining approval in generally, less than a week.

A Broker Understand the Franchise Approval Process

 The specialist in the transaction is the restaurant broker.  He or she will have contacts at the franchise level for approval of the new franchisee.  They often have the forms and requirements for approval ready to go as soon as the deal is in contract.  A seller can work with their own brand to make this happen but to fast track a deal, a knowledgeable resource can accomplish in hours, items that will take weeks to accomplish if you’re learning it for the first time. Want to get on the fast track for selling your restaurant?  Use the resources at your disposal.

When reading all the ways a Restaurant Broker can fast track selling your restaurant, it’s no wonder restaurant brokers frequently hear “This deal never would have happened without you.”  Ready to fast track selling your restaurant?  We can help.  Find more information at the link below.

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Topics: Selling a Restaurant

Best Restaurant Social Media Campaign Ever! IHOP goes to IHOB and We Sell Restaurants says...

Posted by Robin Gagnon on Jun 15, 2018 4:33:15 PM

What’s in a name?  For a company like ours, aptly named, “We Sell Restaurants,” we’re pretty confident that a good name is key to not only describing what you’re about but also gaining traction in the market. 

In the news that nearly crashed the internet this week, a familiar brand decided to change their name and their brand focus is one fell swoop.  For the last 60 years, people have known the name IHOP or International House of Pancakes.  On June 4th, they announced that they were “flipping [their] name to IHOb,” much to the consternation of the internet.

In advance of the announcement, jokes abounded about what the b would stand for. IHOP’s own twitter feed drummed up the action with a poll from their followers.  Guesses ranged from butternut squash to barnacles. Many people guessed breakfast, along with other logical choices like bacon and brunch.DfGbx9SVAAA86ag

The social media team at IHOP(B) did an amazing job teasing out the answer.  Their first tweet announced a change was in the work and then primed the social media pump.  From encouraging the speculation on social media, playing coy about guesses, and changing words that start with a p to start with a b, they managed to stage a brilliant online campaign.  They engaged in Twitter exchanges with others (Check out our favorite - the Wendy’s Twitter account) and overall hyped in a way we’ve never seen, as the name change had clearly been in the works for some time.

What did they get for this daring effort?  How about hours of online press, a social media firestorm and more mentions stacked up in a two week period than they probably had in the last year.  It wasn’t just social media getting into the action, traditional media was engaged as well and a quick search of articles finds three pages of online results for articles written in the past 48 hours.  Look at us – we’re writing about them too!  

Some are asking, is it a publicity stunt or is it real?  We don’t know but what we do know is that the tactic got everyone on board from other brands to schools and universities to corporations.  Here’s just a sample of some of the tweets that fueled the storm this week.

Burger King came out on Twitter claiming to be the king of pancakes.  When asked if they’d let IHOP sell burgers on their block, Wendy’s replied “Not really afraid of the burgers from a place that decided pancakes were too hard.”

Whataburger tweeted “as much as we love our pancakes, we’d never change our name to Whatapancake.” Hot Pockets simply tweeted “bot bockets”. Other non-food corporate twitter accounts joined in.  Netflix tweeted “brb, changing my name to Netflib.”

When the dust settles, it will likely be the best social media campaign ever.  Will it sell more pancakes?  The restaurant brokers suspect they will, at least for the foreseeable future. Will they really be IHOB – International House of Burgers?  We don’t see it.  Let’s stay tuned and see what’s in a name for this brand.

Topics: Buying a Restaurant, Selling a Restaurant

We Sell Restaurants Team Featured in Rivermoore Business Beat

Posted by Robin Gagnon on Jun 11, 2018 9:39:35 AM

The Rivermore Business Beat - Life in the Park Magazine posted this article about Restaurant brokers Steve and Cyndi Weinbaum of We Sell Restaurants in their June 2018 edition.

In 2015, Steve Weinbaum decided he’d had enough of the “corporate grind” and wanted to find a new career path that he would enjoy.  So, he started selling restaurants. Literally.

Weinbaum, joined We Sell Restaurants, a business brokerage practice focused on the restaurant industry. The company specializes in selling restaurants, restaurant space for lease and leads the country in independently owned and franchise restaurant resales. Before long, he was joined by his wife, Cyndi where they created a husband and wife team in the firm.  Cyndi Steve

Steve and Cyndi both have retail and financial backgrounds. They met and married while at Macy’s corporate headquarters in Atlanta where Steve was on the marketing side and Cyndi was in buying. When Macy’s relocated their corporate offices to Atlanta, Steve transitioned to the gift card and payment industry while Cyndi pursued a residential real estate career. Eventually, their Macy’s days led to a connection with Robin Gagnon of We Sell Restaurants. Eric and Robin Gagnon, also a husband and wife team, started the firm in 2001 and have grown it to a nationwide company working in 45 states.

“It’s a lot of fun because you meet buyers and sellers who are looking to get in or out of the industry for different reasons,” Steve said. “I had a guy who worked at a yogurt shop for five years as an operations manager and had the chance to buy one for the first time. You feel like you’re helping people realize their dream, which is both fun and rewarding.”

Steve and Cyndi help buyers realize the American dream of business ownership. They broker deals between parties looking to buy and sell a restaurant. Sellers need their services to figure out the value. Buyers need their advice to make the right decision.

In a typical transaction they begin with the seller who is interested in their services, speak with the restaurant or franchise owner to figure out their financial details, do a valuation and come up with an asking price. The listing is then marketed nationwide to a database of more than 75,000 buyers seeking a restaurant for sale, all while keeping the exact name and address a secret.

For buyers, Steve and Cyndi do the initial work to qualify them for the purchase, assist with lending options and provide overall guidance and support. Prospective buyers must sign a confidentiality agreement and the name of the restaurant is not listed on the site, only locations and details. Once the buyer has been qualified, the restaurant’s identity is revealed.

This career switch has worked out well for the Weinbaum family. They’ve found a way to provide for their blended family and lifestyle while enjoying the flexibility of being in business for themselves. They enjoy helping other realize the dream of small business ownership. They’ve also proven to make a great team. Steve admits he’s not a details-oriented person; that’s more of Cyndi’s strong suit, so she handles a lot of the numbers and writes many of the contracts. Meanwhile, Steve’s background in sales and finance comes in handy when working with sellers and lenders.

“We are a great team. We complement each other with our strengths and skill sets,” Steve said.

Steve can be reached at (770) 714 – 4552 or email at steve@wesellrestaurants.com.

Cyndi can be reached at (770) 851 – 5194 or email at cyndi@wesellrestaurants.com

 

Topics: Buying a Restaurant, Selling a Restaurant

IBBA presents Eric Gagnon with Outstanding Producer Award

Posted by Robin Gagnon on May 17, 2018 5:28:04 PM

 We Sell Restaurants President Eric Gagnon recognized as Outstanding Producer in 2017 by the International Business Brokers Association at their annual convention.

2017-Outstanding Producer-Award-Eric GagnonEric Gagnon of We Sell Restaurants is the recipient of the Outstanding Producer Award given out by the International Business Brokers Association (IBBA) during its annual conference in New Orleans on May 4. The Outstanding Producer Award is awarded to applicants who closed one or more business deals amounting to at least $1 million in total purchase price during the 2017 calendar year.

“As the only international association for business brokers, it’s important for the IBBA to recognize individuals like Eric who are worldwide leaders in this industry and who display the high standards of skill and excellence that the IBBA promotes,” said Warren Burkholder, IBBA Board Chair, "This award lets sellers and buyers know they are working with one of the industry's top performers."

The IBBA is the world’s premier organization operating exclusively for professionals and firms engaged in business brokerage. The Member Excellence Awards Gala that the IBBA 

Eric Gagnon

puts on during their annual conference gives winners the recognition they deserve for their achievements, while also giving their IBBA colleagues the opportunity to engage with them and learn from their experience.

Eric is the founder and President of We Sell Restaurants and wesellrestaurants.comEric is an industry expert in restaurant sales and valuation and holds the Certified Business Intermediary (CBI) designation from IBBA.  He has also been designated a Business Industry Expert by  Business Brokerage Press. 

Gagnon is the Past President of the Georgia Association of Business Brokers (GABB) and Lifetime Member of their Million Dollar Club. He is also the recipient of the Phoenix Award, presented to a select few who have received the Million Dollar Award for more than a decade.  Eric belongs to industry organizations including the International Business Brokers Association (IBBA) , Business Brokers of Florida (BBF), and the International Franchise Association (IFA) . Eric is also an active member of the Southeast Franchise Forum where he serves on the membership committee. Eric is licensed as a Broker in Georgia, Florida and South Carolina. He holds degrees from major universities in both the United States and Canada.

 

About the International Business Brokers Association

The IBBA provides business brokers with education, conferences, professional designations and networking opportunities. As an exclusive education opportunity, it offers coursework and seminars required to obtain its prestigious Certified Business Intermediary (CBI) certification.

The IBBA also strives to create professional relationships with successful business transaction advisors to increase the value of the IBBA to its members and to be a leader in the exchange of business referrals. Membership in the IBBA includes these excellent networking opportunities, as well as a complete package of other benefits and services. Formed in 1983, the IBBA has members around the world. For more information about the IBBA, visit the website at www.ibba.org.  

Topics: Buying a Restaurant, Selling a Restaurant

We Sell Restaurants Founders Earn CBI (Certified Business Intermediary) with IBBA

Posted by Robin Gagnon on May 14, 2018 3:23:48 PM

Eric and Robin Gagnon, the founders of We Sell Restaurants have each recently earned a designation in the industry as a Certified Business Intermediary or CBI.  The prestigious designation is held by less than 500 individuals worldwide. The two tested last week in New Orleans at the annual conference of the International Business Brokers Association.  Those holding this designation represent a unique community of professionals who have undergone significant coursework, possess relevant experience and have passed a test consisting of both industry knowledge and financial competency in recasting. 

Eric Robin Gagnon The CBI designation is earned through the International Business Brokers Association or IBBA.  The IBBA website states that, "the Certified Business Intermediary (CBI) is a prestigious designation exclusive to the IBBA that identifies an experienced and dedicated business broker. It is awarded to intermediaries who have proven professional excellence through verified education as well as exemplary commitment to our industry."  They go on to remark that the designation will, "indicate to potential clients that anyone who holds the CBI certification is a knowledgeable, invested, and dedicated brokerage professional. Successful completion of the certification process significantly distinguishes business brokers from their peers." 

Lifelong learners who are committed to the business brokerage and restaurant industry, the Gagnons had this to say about their latest certification.  "Teaching others how to buy a restaurant, sell a restaurant or just providing overall knowledge and data points are critical to our practice.  A designation like the CBI is just one more piece to our overall commitment to the highest caliber knowledge base we can draw upon to help our customers." 

The International Business Brokers Association (IBBA) is the largest international non-profit association operating exclusively for people and firms engaged in business brokerage and mergers and acquisitions. This association provides business brokers education, conferences, professional designations, and networking opportunities. Formed in 1983, the IBBA has members across the world.

The IBBA strives to create a professional relationship with successful business transaction advisors (i.e. CPAs, bankers, attorneys, and other related associations), to increase the image and value of the IBBA to its members and to be a leader in the exchange of business referrals. A membership in the IBBA provides “the most complete package of membership benefits and services and the best networking opportunities with the most influential group of business brokers.”

The IBBA concentrates on providing educational courses for the business broker profession. It awards the Certified Business Intermediary (CBI) certification as well as the courses and seminars required to obtain this certification.

CBI

Eric and Robin Gagnon have long histories in the business brokerage industry.  They launched the We Sell Restaurants brand in 2001 and currently work in approximately 45 states across the nation.   

Eric is the founder and President of We Sell Restaurants and wesellrestaurants.com.  He is the nation’s leading restaurant broker.  Eric is an industry expert in restaurant sales and valuation.  Eric, along with Robin is the co-author of Appetite for Acquisition  an award winning book on restaurant brokerage published in 2012 and named "Best of" by Small Business Book Awards.  Eric began his career in the financial services industry for Bank of America, Bank of New York and big five accounting firm, KPMG before launching the nation’s premiere restaurant brokerage firm and restaurant brokerage franchise.

Eric is the Past President of the Georgia Association of Business Brokers (GABB) and Lifetime Member of the Million Dollar Club. He is also the recipient of the Phoenix Award, presented to a select few who have received the Million Dollar Award for more than a decade.  He is a member of the International Business Brokers Association (IBBA), Business Brokers of Florida (BBF), and the International Franchise Association (IFA). Eric is also an active member of the for the Southeast Franchise Forum where he serves on the membership committee. Eric is licensed as a Broker in Georgia, Florida and South Carolina.   He holds degrees from major universities in both the United States and Canada. 

Robin is the Co-Founder of We Sell Restaurants and the firm's Chief Marketing Officer.  Robin is one of the most prolific restaurant brokers in the industry and is a franchise resale specialist. Robin's expert articles appear online and in print across the country. She co-authored Appetite for Acquisition,  the industry's leading book on buying restaurants that received the prestigious "Best of " award by Small Business Book Awards.  Robin is a member of the International Franchise Association and serves on the Women's Franchise Committee and the 2018 Conference Committee.  She is also the Chair of the Women's Franchise Network - Atlanta Chapter.    

Robin holds an undergraduate degree and an MBA where she graduated first in her class and was named "Outstanding MBA." Robin is an emeritus member of the ASU Business Advisory Council. She is also a founding member of the ASU Entrepreneurship Board. Robin is a licensed real estate salesperson in both Georgia and Florida and member of the Georgia Association of Business Brokers (GABB), the International Business Brokers Association (IBBA) and the Business Brokers of Florida (BBF).  She has been named a National Industry Expert by Business Brokerage Press in Franchise Resales.   Prior to joining We Sell Restaurants, Robin served as Vice President of Strategic Marketing for a $4 billion-dollar retailer and Director of Advertising and Director of Business Development for another Fortune 100 company. 

For more information on the services of We Sell Restaurants or its founders, visit their website at wesellrestaurants.com 

 

Topics: Buying a Restaurant, Selling a Restaurant

A Restaurant Broker Asks, "Do I Draft a Quarterback or Receiver?"

Posted by Dominique Maddox on Apr 20, 2018 7:48:00 AM

Should I draft a Quarterback or Receiver to sell my business? This restaurant broker has an opinion on the topic.  What's yours?

It's the time of year when football fans are glued to the TV listening to sports commentators talk about NFL prospects waiting to be drafted. This highly speculative event is where players realize their lifetime dreams of being drafted into the "league." Team owners a lot of money each year for their scouting department to evaluate the talent of potential players. They make this investment with one goal in mind. Which player can help their organization WIN? The right draft pick can help a team WIN and increase the value of an organization.

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The NFL draft puts a dollar value on each player position and the market value for each position is different. The team with the number #1 pick wants to get the most production and value for their pick. This is very similar to a seller that wants to sell their restaurant. They are choosing from a lineup of players (or brokers). Their challenge is to find the one who can help them WIN and increase the value of the transaction.

Quarterbacks are a highly specialized positions that can change the fortunes of a team. This position requires owners to pay a premium salaries. Kirk Cousins just signed a 3-year, $84 million dollar averaging $28 million a year and it’s ALL guaranteed! The highest paid Receiver only makes $17 million a year. Why would an owner pay a Quarterback 165% more than the top Receiver?

 

The answer is very easy. It’s called Value. That can be defined as “the regard that something is held to deserve; the importance, worth, or usefulness of something.” A Specialized Restaurant Broker is like a Quarterback. They bring more value than a generalized agent that is a "jack of all trade" selling anything from a day care center to a beauty salon.  Making the wrong choice to sell your restaurant would be like drafting a Receiver that would not help you WIN.

Certified Restaurant Brokers quarterback the sales transaction from the beginning to the end. They communicate with the seller, buyer, bank lenders, landlords, CPA’s, Franchise, closing attorney, and sometimes vendors. Restaurant Brokers are valuation specialists and understand the cash flow and add backs of a restaurant situation. They understand the deal making process and know when an audible may have to be called to get the deal closed.

I played football at Morehouse College in Atlanta, Georgia and I did not get drafted to the NFL. On the other hand, I have restaurant sellers draft me every day to quarterback the sales transaction of their restaurants. I’m honored to represent these sellers and give them an opportunity to pursue their new life ambitions.

When it’s time for you to sell your restaurant make sure you draft the right person to represent you. It's not fantasy football and the right pick is critical.  The right draft pick can be the difference between selling your business for the most money in the shortest period of time or waiting while the clock runs out on the field. Get the guy that can score a touchdown each and every time!

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Topics: Selling a Restaurant