So you want to sell your restaurant, now what? Well, you’re in luck; we help owners do this every day, so we know all the steps you need to take once you decide to sell your restaurant.
How to Know When it’s Time to Sell Your Restaurant
There are many reasons owners decide it’s time to sell their business. It can be difficult to decide that now is the right time. Aside from the fact that we’re seeing a lot of interest from restaurant buyers right now, there are some other factors to consider when deciding to sell.
It might be the right time to sell if you:
- want to focus on a new concept or business.
- are at the top of your game and want to sell for the best price.
- want to retire/ transition careers.
- are tired of dealing with staffing challenges, food costs, or any other industry challenges.
- need a break because keeping a restaurant running is hard work!
Whatever the reason, we can help you talk through your options and plan your next move! Contact us for a free consultation.
Get the Key Players on Board
If there are multiple owners or it’s a family-run affair, you might need or want to get multiple people to agree to your sales plans. Make sure to have these discussions upfront so you know whether you’re able to sell. It’s always easier than finding out down the line that someone with a vested interest is against the idea.
Assess Your Current Business & Set a Price
To sell your business, you should put together some numbers and assess how much it might be worth. Basically, you want to determine the value of your restaurant’s goodwill, assets, real estate (if applicable), and location and then factor in how quickly you want/need to sell.
Documents that Help You Determine Your Price
- Tax Returns- Gross Revenue & Cash Flow
- Best Year Revenue- Potential of the Spot
- List of FF&E and Other Assets (like Liquor License)
- Appraisal of Real Estate
When you factor these items into your price, you can see what your property may be worth. It’s a good idea to also leave some room for negotiation in your pricing. When it comes down to it, the value of your business is also tied to what buyers are willing to pay. Sometimes you don’t know what that number is until you start trying to sell your restaurant.
If you need help figuring out what your business is worth, contact us to learn more about what services we offer that can make the process easier.
Decide Whether You Want Confidentiality
If your staff and community know you’re looking to sell or you’ve already closed down, you might not be concerned about confidentiality.
However, many owners don’t want it to be common knowledge that they are selling. Sometimes an open (not confidential) sale can lead to staffing issues and changes in revenue. There are many ways to market your establishment and still keep things confidential. In fact, that’s one of the things we specialize in at Sofranko Advisory Group.
Contact us to learn more about our confidential sales process.
Decide Who You Want to Help You Sell Your Restaurant
If this process feels overwhelming, it’s because it can be. While you can try to do it yourself, most owners seek help to sell their restaurants. And rightfully so, the right professionals can help connect you with qualified buyers and help solve any problems along the way. At Sofranko Advisory Group, we pride ourselves on helping with the whole process of selling your restaurant.
What We Can Help You With
- Figuring out a price
- Confidential marketing,
- Vetting potential buyers, and
- Bringing you fair offers.
- Connecting you with our extensive network of industry professionals
Contact us to learn more about how we can help!
How Long Does it Take To Sell a Restaurant?
The sales process varies based on a lot of factors. In rare circumstances, we’ve had deals turn around in just a month or two, but often it can take 6 months to a year for a sale to occur. If a liquor license is involved in the sale, the transfer process also adds time to the process. In most cases, getting started sooner rather than later is beneficial because the whole process may take a long time.
If you are ready to get started today, contact us!