When negotiating the sale of your restaurant, come prepared with a full financial and market report as well as legal counsel.
For restaurant owners looking to get out of the business, there are several things that can be done do to help ease the process of selling the restaurant. Develop a 6- or 12-month plan for the steps you plan on taking for selling your restaurant, and focus on thinking like a buyer when promoting your restaurant for sale. This means focusing on the things you looked at when choosing to buy a restaurant, such as price, location and operations.
Instructions
1. Determine the value of your business. This is based on several factors, including your restaurant's cash flow, stability of earnings and revenues, value of tangible assets, and location. Hire an experienced restaurant appraiser to help you figure out this number.
2. Set a target price that maximizes your return on investment or minimizes your losses.
3. Clean up your restaurant. Soon you will have prospective buyers coming to take a look at your restaurant. Make any necessary improvements, and clean up your restaurant to give it the most professional looking appearance possible.
4. Create a financial and market report for potential buyers. Use this report to communicate all financial information, such as revenues, expenses, profits and information about the marketplace, such as competitors and customer demographic information. Include buyer financing options as well.
5. Market your restaurant business to prospective buyers. Tell your friends and family so they spread the word for you. Place ads online and in the newspaper announcing the sale of your restaurant. Post a message to all your friends on social networking sites. Search for investors online at investor pool websites like GoBIGNetwork.com. The key is to get the word out there so potential investors come to you.
6. Negotiate the sale of your restaurant. Once you find an investor who you feel is a good candidate to purchase your restaurant business, it's time to negotiate the terms of the sale. Hire a lawyer and make sure they are present at any meetings involving negotiations. A lawyer will also help ensure you have all the proper legal paperwork in place when negotiating the sale of your business.
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