While you may think that selling a restaurant is no different to selling any other type of business the reality is that it is very different, with some factors that are unique. Many steps need to be taken before being able to hand over the keys to the new owner.
1. Valuation – Numerous factors go into calculating the worth of a restaurant. Things such as fittings and fixtures, the location of the property, financials, of course, comparisons, staff and whether it is leased or owned outright are all things that when combined will add up to a figure that the asking price can be based on. This is something that may be too difficult for the seller to do as they may be emotionally invested in the restaurant and put a higher value on things than they are worth. Remember that a restaurant is only worth what a buyer is willing to pay for it. Hiring a broker to conduct a valuation will provide you with a more realistic price based on the current market.
2. Potential Buyers – Buyers of a restaurant vary from business investors looking to add a restaurant to their portfolio, to chefs looking to buy their own restaurant and even the existing staff of the restaurant may want to purchase it from you. Your competitors may consider buying your restaurant for many reasons also. Also do simple searches such as “Restaurants for Sale in Vancouver, British Columbia, Canada” to see where other businesses are advertising their sale.
3. Right Time to Sell – Timing is everything when it comes to whether it is the right decision to sell a restaurant. The results of a survey recently conducted by BizBuySell revealed that many business buyers felt that the restaurant sector was particularly attractive at this time, with over a quarter of the survey respondents saying they were keen to make an investment in the restaurant industry. Ideally, anyone considering selling their restaurant should put it on the market when it is valued at its highest. Being able to back your asking price up with proof of the value of the restaurant will go a long way towards convincing potential buyers that your restaurant is a good purchase at this time.
4. Hire a Broker – Professional restaurant and business brokers are extremely knowledgeable about not only the process of selling a restaurant but also the local market, comparisons, legal ramifications such as capital gains tax, and will also have a list of potential buyers at their fingertips. A good broker will be able to get your restaurant marketed effectively so the right buyer can be found and you get to sell your restaurant at the highest price possible.