When you are selling your bar the buyer will usually visit your bar as a customer first and then if they are interested, they will request a meeting with you to view the backend operations.  Remember that you are well within your rights as the seller and you or an experienced broker can opt to show your bar around the hours you are open for business. 

You can show the bar before the staff arrives in the morning or at night after you have closed.  The buyer should understand that you must show the bar around business hours to avoid interrupting the workflow process during your hours of operation.  If it is not possible to do this, you can have the buyer pretend to be an inspector or other logical person that would visit your business during the hours of operation.

Once you set up the meeting with the buyer here are a few tips to keep the deal on track:

Make Sure the Broker is Present

It is important to make sure your broker is present during your meeting with the buyer.  The broker can act as a buffer between your intentions of being helpful and the buyer who wants to get as much information as he can about your business.  Not all buyers have the best of intentions when they ask for information.  If the broker tells them “No, you cannot have a copy of the tax returns and instead I will forward them to your CPA,” the buyer will sometimes act like a child who did not get the right answer from one parent so they approach the other parent to seek the answer they want.

Don’t Provide Copies of Financial Information

It is okay to discuss some of your financial details pertaining to the business with a pre-qualified buyer however you should allow your financial information to be distributed through your broker for your own protection.

Don’t Give Your Business Card to the Buyer

If you exchange your business card with the buyer this opens the door for him to ask you more questions without the broker present.  This is similar to the example above when he didn’t get the answer from the broker that he was looking for.  In the event the buyer does request a business card you can handle this by instructing the buyer to talk to your broker for all of the information he needs.

The buyer may also make an effort to find you to ask more questions when the broker is not present.  Once again, you can tell the buyer to contact your broker with any questions that he might have.  If this happens, make sure you contact your broker to tell the buyer that he is in violation of the confidentiality agreement.

 Keep the Discussions Concise

 Keep all of your discussions with the buyer brief and personable.  Provide answers that are focused, specific, and short.  It is always normal to be nervous with the buyer which makes you talk too much and reveal too much information.  For example, you do not want to tell the buyer that you were close to bankruptcy just a short time ago and look at how you brought the bar back into fruition.

Schedule So You Can Be on Time

Schedule your meeting with the buyer so you can be on time.  If your kitchen staff is done at 11 pm then schedule the meeting for a few minutes after so you do not start off on the wrong foot by being twenty minutes late for the meeting.

Provide Your Reason for Selling

You should always tell the buyer why you are selling your bar.  This is one of the first things a buyer always wants to know.  If there is a personal situation that is coercing a quick sale and making you motivated to sell, you do not want to lose your leverage with the buyer by telling him that one of your partners is gravely ill and is only expected to live a few months.

Some of the reasons you can reveal for selling your bar can include a change in lifestyle, taking care of your elderly parents in another location, retirement, or irreconcilable differences among your business partners.  Try to avoid using the reason that you want to pursue other interests because it will not make any sense if your business is profitable.  Additionally, this reason is used so often that it just gets old from the buyer’s point of view.  If you are the first owner of a franchise that is not doing well financially you can reveal this information to the buyer if they have seen it already by looking at the books.

Avoid Providing Legal or Liquor License Advice

It is okay to tell the buyer who the person is that handles your liquor license however do not tell him “The liquor license is not problem, here is all you do.”  Instead refer the buyer to your broker for a liquor license resource or provide your broker with the contact information for the person handling your liquor license.

Stay Professional and Above the Fray

If you have regrets because you feel you have been worked over by the landlord or you paid too much for the franchise, keep these feelings to yourself during the meeting with the buyer.  Not only are they irrelevant to the buyer but it will also signal red flags to the buyer and start raising issues.

Don’t Provide Landlord or Franchise Contact Information

The buyer does not have any legal right to information pertaining to third parties until the deal is under contract.  What’s more is you do not want the potential buyer to contact third parties and possibly drive a wedge in the relationship and then walk out on the contract.  Instead, when the buyer asks you for this information refer him to your broker for the information and your broker will take control of the buyer’s contact with third parties.