Most restaurant business owners do not think about selling their restaurant until they have a need to do so. At My Restaurant Brokers, we recommend to restaurant owners that they take the time to consider the reasons for wanting to sell, so they won't regret the decision at a later date.
Retirement -- One of the best reasons to sell your restaurant. Planning for this event provides a business owner with the knowledge that they will have the best possible structure that will provide for the lowest tax impact and the ability to achieve the best value.
Illness -- Unfortunately, this is the worst reason to sell, but also the most difficult to control. If this does occur, using a professional team to sell or run the restaurant can help the business owner and their family get through with the best possible outcome.
Capital -- Both the lack of capital and the need for capital to grow can cause a business owner to consider selling. A company may be restricted to the opportunities they can work on due to the need of a specific piece of equipment. There are several methods to fund this type of need, but the first step is to outline a business plan to show the value that can be created by the addition of the equipment.
Partnership Disputes -- When partners disagree, especially when they have been life and business partners, the restaurant can quickly suffer from the lack of focus on the day-to-day needs of the business. When the differences are not reconcilable, it is important that the partners find a way to work together to sell the business at a fair price.
Burnout / Boredom -- Owning and running a restaurant, especially as it is growing, means putting in a lot of time. It is not unusual for business owners to work 16 hours a day. Many miss out on personal time with family and friends and stop all non-business related activities. We recommend that owners experiencing either boredom or a burned out feeling take time off from the business. Take a short trip, take the time for a course, and take the time to attend a personal function. Then reconsider if selling is the right answer for you. Many owners find that when they have re-directed some of their energy from the business into non-business activities, they wind up re-energizing their business spirit.
Failing Business -- Restaurant owners begin their enterprises with the optimistic expectation of success. No restaurant owner ever planned to fail. However, tough competition, economic factors, departure of key employees, loss of large accounts, or the owners own momentum can all affect the success of the restaurant. This can be especially difficult if the owner has most of their personal equity tied up in the restaurant. If there is a viable business plan in place, there are many steps that an owner can take to maintain or re-create the success of the restaurant. Selling is just one option.
Selling your restaurant for the wrong reasons, can affect more than just the loss of the business. If you sell without getting enough to retire on, then you may end up looking for a job where you will make less than if you had kept the business.
Selling for the right reasons, and taking the time to do it properly, will help you achieve the outcome you desire. The right business structure, the right buyer, and the right time, will provide the best situation to obtain the best value.
It is important to plan ahead. Take the time to consider why you are selling and then take the steps to prepare for the sale. Too many restaurant owners fail to plan ahead and then are forced to sell quickly, with unwanted consequences.
About The Author: Christina Lazuric, CBI is a Principle and Broker at My Restaurant Brokers. Christina has brokered hundreds of Restaurants, Bars, Food Franchises and food related businesses. MRB has the experience and buyer database to find the perfect buyer for your Restaurant or Bar. Serving Orange County & L.A. County, Christina can be reached direct at 949-257-7823 for any questions or having a consulation regarding buying or selling a restaurant.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Peter Siegel, MBA: Business Purchase Financing Solutions
Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.
|Randall Barondess CBB, Business Brokerage Services - Central Coast
Experts at: Preparing Businesses For Sale, No-Cost Valuations and Lease Modifications. MaxOne Business, a REMAX ONE Company prepares small, mid-sized and large businesses for sale by confidentially packaging the business and providing guidance throughout the sales process.
|Mike Brewer: Liquor License Broker, ABC Consulting Service
Liquor license brokerage and consulting services. We provide: Alcohol License Transfers Application Consulting & Processing, Liquor License Purchases & Sales, City Zoning Permits & Land Use Entitlements, Public Convenience or Necessity Findings and Letters. Phone Mike Brewer direct at 800-437-1100.
|Steve Zimmerman: Restaurant Broker Specialist, California
Steve founded Restaurant Realty in 1996. He has personally sold/leased over 1000 restaurants, bars & clubs, & completed over 3000 valuations. The author of "Restaurant Dealmaker- An Insider's Trade Secrets For Buying a Restaurant, Bar or Club" available on Amazon. Reach Steve direct at 415-945-9701.
|Michael Davidson, Business Broker - Southern California
Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.
|Rick Carlson, Business Broker - Southern California
You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.
|Joe Ranieri, Business Broker: Orange, LA County Areas
Having owned retail/restaurant businesses for over 20 years, my interest turned to selling businesses rather than owning them. I specialize in LA & Orange County restaurants, fast food independents and chains, bars, & liquor stores. Call 714-292-5448 Cell/Text.
|Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs
Founder Of BizBen.com (since 1994). I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I consult daily with buyers, sellers, and brokers daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.
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