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Tips for buying an existing restaurant


Published on - buying a restaurant has less risk than starting a new restaurant, but without knowing what to expect you could find yourself in over your head. Here are the tips for buying a restaurant. If you need help in the purchase of a restaurant, call business broker, Kimberly Deas 904-571-9580

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Tips for buying an existing restaurant

  1. 1. Tips for Buying an Existing Restaurant Kimberly Deas / William Yankee Business Transfer Specialists 904-571-9580
  2. 2. Buying a Restaurant has Risk • #1 Business to fail • Like an on-demand manufacturing plant • Risk can be mitigated by buying existing restaurant opposed to starting a new. 904-863-6655
  3. 3. #1: Qualify Yourself • Just because you can cook, doesn’t mean you should own a restaurant. – Do you have skills to run a restaurant? – Do you have capital to keep it open? – Do you have enough cash to buy a GOOD restaurant? 904-863-6655
  4. 4. #2: Understand What You are Buying • Not every owner is forthright with information. – Why are they REALLY selling? – Are they highly motivated and WHY? – What assets are being sold with the business? 904-863-6655
  5. 5. #3: Do Your Research • Know what are you REALLY buying! – What do others say about them? – Is the business mismanaged? – Is there an innate problem with the business (competitors, pending road construction, etc.) 904-863-6655
  6. 6. #4: Location, Lease and Landlord • The current owner will leave the business after the sale, but the landlord is there to stay. – What are the landlord requirements? – Is the lease more than 10% of revenues? 904-863-6655
  7. 7. #5: Understand Pricing • Restaurants are priced on either value of assets or cash flow. – How did the owner come up with the price? – Is the owner offering seller financing? – Is the current owner reporting all cash sales? – Can they prove cash sales? – Is there a broker involved? 904-863-6655
  8. 8. Advantage of 1 Broker vs. Many Brokers For Buying a Restaurant 1 Broker • FOCUS, FOCUS, FOCUS!! • Broker completely knows you and your needs • Accumulated knowledge of your interests • Business Advisor to guide process • Insight to Early Listings Many • No Focus • Keep retelling your story • No broker looking for you • If talking to every broker, some brokers might not work for you. 8 904-863-6655
  9. 9. Working with a Broker • To Qualify – Complete intake interview – Complete Personal and Financial Profile – Provide Resume • Pre-qualify for purchases (as needed) • Complete NDA’s in timely fashion • Provide feedback on each business evaluated 904-863-6655
  10. 10. Why Use Us? • High Level Professionalism • Confidential • Dedicated Networks of Brokers to find Listings • Responsive • Experienced • Partnership Creates more Results 10 904-863-6655