When you have decided that it is time to put your restaurant up for sale, there are a few steps you will need to complete before you list your restaurant on the market.

The first step is to hire a business broker who is experienced in the restaurant market. You will want a broker who has restaurant industry contacts, lists of potential restaurant buyers who are waiting for the right kind of place to come up for sale, and an already established marketing technique specific to restaurant sales.

The second step involves some work on your end. You will need to gather all of the information your broker and any potential buyer will need to see. As you are deciding what information to include and what you shouldn’t include, think of the kinds of questions that you would ask if you were a buyer. Why are they asking this price for the restaurant, and based in what I’ve been given do I agree that it is a fair price? How much does this restaurant earn and what are the operating costs? The package that you and your broker will assemble will need some essential parts. Include the last three years of tax returns, profit and loss statements for those three years, a copy of the lease agreement, and a list of the furnishings and equipment.

What will happen next is your broker will take all of the information you’ve assembled and create a package to present to prospective buyers. Included in this step will be deciding on a listing price, so after your broker has a chance to look at the numbers you will discuss what the business is worth on the market. This step can be difficult for some restaurant owners, as you have put your heart and soul into your establishment, but the decision of listing price really needs to be made without emotion. Your restaurant is only going to sell for what a buyer is willing to pay for it. Your broker will use what your financials show as well as what comparable restaurants have sold for in determining a fair asking price. It is important to listen to what your broker has to say because if your price is too high, your restaurant will stay on the market indefinitely.

The last step will be the listing of your restaurant on the market. If you have priced your restaurant fairly and have a nice package put together, you will be on a good path to getting your restaurant sold.

Are you a restaurant owner who is ready to sell, but needs to know what to get together for a listing and marketing package? Leave us a comment or question here, and we will be happy to assist you with your restaurant package.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com