4 Questions to Ask Before Selling a Restaurant Business

Selling a business, especially a restaurant, is unlike selling any other business. From preparing your restaurant for valuation to connecting with the right restaurateurs, there are many steps to selling a restaurant business. Luckily, the expert business brokers at Sunbelt are here to answer some of the most frequently asked questions regarding restaurant sales.

How Much Is Your Restaurant Worth?

Your restaurant’s worth is dependent on a number of factors such as location, FF&E (furniture, fixtures, and equipment), comps, financials, lease, management, and more. It is typically very difficult to use rules of thumb when valuing a restaurant, which is why restaurant owners frequently hire a broker to provide a valuation.

Additionally, it is important to remember that oftentimes sellers have an inflated view of their restaurant’s value. While you may have poured time and resources into your restaurant, it is ultimately only going to sell for as much as a buyer is willing to pay for it.

Who Are the Potential Buyers?

Potential buyers for a restaurant vary from serial restaurateurs and chefs to competitors and more.

Additionally, many restaurant employees and managers are potential buyers. According to the National Restaurant Association, 46 percent of restaurant employees want to own a restaurant at some point. What better way to sell your restaurant than to someone who has experience working in it or running it?

Is It the Right Time to Sell Your Restaurant?

When it comes to selling a restaurant, it’s all about timing – and it turns out that the year 2016 is a fantastic time to sell! According to a recent survey by BizBuySell, business buyers found the restaurant sector to be the most appealing business sector in 2016, with 26 percent of respondents saying they want to enter the restaurant industry.

Ultimately, owners should think about selling when their restaurant is at peak value. The more valuable you can prove your restaurant is, the higher you can set your asking price. Also, be sure to consult with your broker, lawyer, and accountant about how to best position your restaurant to maximize the sale price before a potential capital gains tax increase.

Why Work with a Broker to Sell Your Restaurant?

From valuations and connections to advertising and negotiations, restaurant brokers and business brokers are a wealth of knowledge when it comes to selling restaurants. Not only do brokers have market knowledge in your area, but they also have access to a network of qualified potential buyers.

Ultimately, working with a business broker ensures you receive optimal listing exposure and top-dollar for your restaurant. If you’re looking for a business broker to help you with the sale of your restaurant, contact your local Sunbelt Business Brokers office!