Selling, Buying Used Restaurant Equipment Tips: When Selling Or Buying A Restaurant
The restaurant business is a tough business to be in, no one can dispute that, and so it's imperative that an owner's equipment is in good working condition. A new owner should make sure that the restaurant's equipment is in good working order before they close escrow. We discuss this topic.
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The restaurant business is a tough business to be in, no one can dispute that, and so it's imperative that an owner's equipment is in good working condition.A new owner should make sure that the restaurant's equipment is in good working order before they close escrow, because after escrow is closed, dilapidated equipment and costly repairs will come out of their pocket.
A new owner may take possession of the business and later decide to do upgrades to their equipment.
Tips For Selling:
1. Have equipment manuals and warranties (if applicable).
2. Clean the equipment, remove grime and grease as best as possible.
3. Call a restaurant equipment dealer, and especially inquire about their shipping fees.
4. Consider selling it yourself, possibly on craigslist, an ad in a restaurant equipment magazine, putting an ad on a bulletin board at a restaurant supply store.
5. Be realistic about pricing, because restaurants are constantly changing hands or going out of business, and so there could be a lot of equipment on the market at any given time.
Tips For Buying:
1. Contact a local restaurant equipment dealer.
2. Make sure that the equipment is in good working condition before buying.
3. Inquire with the health department to make sure that model of equipment has not recently been flagged and will be okay to put in your store.
4. Receive equipment, if from a dealer, that has at least some limited warranty, like 60-90 days.
Contributor: Shalonda Chappel, Escrow, Bulk Sale Services
This is very true. I had an escrow close and the Seller owned the business for over 20 years. When he purchases the business there were no requirements of having a grease trap in the kitchen and the burners on the commercial stove did not work . The New Buyer has to install and repair, prior to getting a health permit. This delayed the escrow closing for about 3 month. Due to the unexpected expense.
