Robin Gagnon, CEO of We Sell Restaurants, recently appeared on The Exit Podcast to share her expertise in restaurant sales. Known for engaging top business leaders, the podcast explores strategies and opportunities for planning successful business exits. Hosted by Steve McGarry, entrepreneur and investor, the series delivers actionable insights in just 30 minutes, making it a go-to resource for business owners navigating the complex exit process.

The episode, titled “Mastering Restaurant Exits: Robin Gagnon’s We Sell Restaurants Story,” chronicles Robin’s two-decade journey helping restaurant owners transition their businesses. It also highlights the impressive growth of We Sell Restaurants into the nation’s largest restaurant brokerage firm, operating in 45 states with over 1,000 listings valued at approximately $450 million.

Key Insights from Robin Gagnon on Selling Restaurants

In this episode, Robin provided a roadmap for restaurant owners considering a sale, covering everything from preparation to valuation. Below are the standout lessons:

Robin kicked off by explaining the unique nature of restaurant sales compared to other businesses. She highlighted key factors like:

• Tangible Assets: Equipment and fixtures.
• Intangible Assets: Brand reputation and goodwill.
• Real Estate: Lease agreements or owned property.

The current demand for quick-service restaurant concepts and second-generation spaces underscores the importance of staying attuned to market trends. These factors heavily influence both valuation and buyer interest.

Preparation is the foundation of a successful sale. Robin emphasized three critical areas:

• Financial Readiness: Transparent and up-to-date financials, including tax returns and profit-and-loss statements, are essential.
• Operational Efficiency: Restaurants operating smoothly and profitably are more appealing to buyers.
• Owner Independence: Restaurants that function without heavy owner involvement often attract better offers.

Robin noted that preparation reduces hurdles during the sale process and positions the restaurant more competitively.

Robin stressed the importance of working with Certified Restaurant Brokers, like those at We Sell Restaurants. Their specialized training includes:

• Accurate Valuations: Determining fair market value based on industry-specific data.
• Targeted Marketing: Reaching the right buyer pool efficiently.
• Confidentiality: Ensuring the sale remains private to avoid disrupting staff, customers, and suppliers.

Brokers streamline the process, helping both buyers and sellers navigate legal, financial, and operational complexities.

Robin detailed the key drivers of restaurant valuation:

• Revenue Trends: Steady or growing sales attract more buyers.
• Profit Margins: Higher earnings translate into higher valuations.
• Lease Agreements: Favorable terms or ownership of real estate can enhance value.

She cautioned sellers against unrealistic expectations, stressing the need for data-driven pricing strategies.

Robin also addressed common buyer challenges, including financing and due diligence. Sellers who proactively prepare documentation and remain responsive can mitigate delays and ensure a smoother transaction.

Timing was a recurring theme in Robin’s advice. She encouraged sellers to list their businesses while they are performing well and market conditions are favorable. Waiting too long—especially during a business downturn—can significantly impact valuation.

Robin concluded the podcast with a call to action for restaurant owners: approach the sale of your business with the same strategic mindset used to build it. Proper preparation, realistic expectations, and support from a Certified Restaurant Broker can help maximize the value of the sale and ensure a seamless exit.

For the full conversation, tune in to The Exit Podcast here. Robin Gagnon’s insights are invaluable for any restaurant owner considering a sale, offering practical guidance for navigating the complexities of the process.