Selling any business is a big decision, so you want to make sure you get the best price possible. You need to get back what you put in, plus a little extra for all the sleepless nights and early mornings.
Here are a few tips to help you get top dollar when selling your restaurant business.
Get Your Restaurant in Tip-Top Shape
This is a no-brainer, but it's important to remember that potential buyers will be looking at your restaurant with a critical eye. They'll be asking themselves if they can see themselves continuing to run the business successfully. They'll also be looking for any and all faults so they can try to negotiate the price down.
So, before you put your restaurant on the market, take some time to really spruce the place up. Get rid of any old or outdated decor, repair any damage, and give the place a good deep cleaning. From the dining area to the kitchen to the bathrooms, every nook and cranny should be sparkling. You might even want to consider hiring a professional cleaning service to give the restaurant a thorough once-over.
You should also ensure that your restaurant equipment is in good working condition. If you need to replace any big pieces, like the oven or fridge, do it before you list the restaurant. But don't stop there. Check out all of the smaller details, too, like making sure the utensils are clean and in good condition, the glasses are spotless, and the linens are pressed.
Remember, first impressions matter, so you want to make sure your restaurant looks its best before potential buyers start touring it.
Be Realistic About Your Price
You might have a number in your head of what you think your restaurant is worth, but it's important to be realistic. If you overprice your restaurant, it could sit on the market for months or even years without selling. Potential buyers might feel like they can find a better deal elsewhere, so they'll never even bother making an offer.
On the other hand, if you underprice it, you could end up leaving money on the table. Sure, you might sell it faster, but is a quick sale really worth sacrificing thousands of dollars?
To come up with a realistic price, consult with a restaurant broker or appraiser to get an expert opinion. They'll be able to help you determine a fair asking price based on things like the restaurant's current condition, its equipment and fixtures, its financial history, and the current market conditions.
They'll also include things like goodwill in the asking price. Goodwill is the intangible value of your restaurant, including things like the restaurant's name, reputation, location, and loyal customer base.
Once you have a number in mind, it's important to be firm on your price. Don't let potential buyers lowball you or try to haggle you down. Remember, you're the one in control here, so don't be afraid to stand your ground. A reliable broker can even negotiate on your behalf to help you get the best possible price for your restaurant.
Contact a local company, such as Restaurant Business Broker, to learn more.