Westchester, Rockland, Putnam, Lower Fairfield Counties and New York City
Confidentiality Sell a Restaurant
There are various aspects to buying or selling a restaurant that require industry-specific knowledge and experience to execute properly. Confidentiality is a vital component to the process. Maintaining privacy in selling a restaurant is very important to every seller, and even to restaurant buyers, particularly if you are a chef. Unfortunately, many business brokers and real estate agents are unaware of the process of how to sell a restaurant and maintain confidentiality. Public awareness of a potential sale severely cuts the demand for future parties. You also run the risk of losing your key employees, and overall staff moral is compromised. I take this concern and risk very seriously. All of my potential restaurant buyers are carefully screened and given a confidentiality agreement to sign before they are provided with the name or location of a restaurant that is for sale. This process also separates the “lookers” from the serious buyers.
How much is a restaurant worth?
Establishing the value of a restaurant is another critical element in buying or selling a restaurant. An overpriced restaurant will not sell, and an undervalued restaurant leaves money on the table. It is also important to know and understand the local market conditions, which can also have an influence on value. There are three industry-specific formulas used to established value:
The Gross Sales approach
The Cost to Build approach
The Sellers Discretionary Earnings approach.
I am well versed in all three approaches.
Typically, a restaurateur has an emotional attachment to his or her restaurant. This can lend itself to feeling that their restaurant has more value than what the buyers in the market will pay. Don’t be surprised by incorrect expectations.
Feel free to call me to estimate the value of your restaurant at (917) 715-4346.
How do I sell a restaurant?
Marketing a restaurant to potential buyers is extremely important to the sale of the property. Discretely describing the important aspects of a restaurant, such as square footage, number of seats, rent, general location and significant features, is the first step in attracting interest. Industry-specific websites and my extensive database of restaurateurs will be used to target prospective buyers. Upon receiving a signed confidentiality agreement and qualifying the buyer, a professional brochure will be sent out to the buyer. The brochure will include photographs and a detailed description of the restaurant, lease or property value.
I make every effort to create a mutual understanding between the buyer and seller to close the deal. A letter of intent is drawn up with the specifics of the sale for the attorneys to use as an outline for the contract. A detailed equipment list will also be created to avoid any misunderstandings at the time of closing.
Utilizing my services will allow you to focus on running your restaurant, and will remove any emotion to help negotiate the best possible deal for you.