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July 23, 2008    
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Selling Restaurants Newsletter
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The Selling Process

Our Exclusive Selling Process is the most effective in the industry.
You will receive results in:
Your business being sold in a professional & confidential manner. More qualified Buyers being exposed to your business. Instant access to thousands of our exclusive Buyers. Putting our 14+ years of experience to work for you!

We get you Maximum Exposure, Maximum Appeal!

SellingRestaurants specializes in selling restaurants, bars, nightclubs and related food businesses. For over 14 years, we've provided brokerage and valuation services for the restaurant industry. We have the experience, expertise and objectivity to answer your business selling questions and concerns. There is never a consultation or an up-front listing fee. Call us to set up a confidential meeting to discuss selling your business. All information and meetings are discreetly and confidentially handled.

Here are answers to the three most frequently asked questions from Seller:

1. How is the value of my business determined?

The value of a business depends on many factors, but the most important are:

  • Cash flow: On a nationwide basis the average restaurant sells for 2.2 times seller's annual seller's discretionary cash flow (SDCF) as determined by a detailed analysis of the restaurant's tax returns. SellingRestaurants often sells prime restaurants for 3 times SDCF, which is the highest value the SBA will place on a business. Of course, digging into the financials to identify the true owner perks and legitimate add-backs is what SellingRestaurants does best! We are financial experts!

  • Stability of Earnings & Revenues: Restaurants with revenues and earns showing year-over-year growth will command a high SDCF multiple than one showing a decline.

  • Value of tangible assets (inventory, equipment, fixtures, etc.): The better the condition of the equipment, the higher the multiple on SDCF.

  • Location and lease: This can add significant value if the location is in a high demand prime location with a lease that is clearly below market.

  • 14+ Years of Experience: After selling Restaurants for 14 years, SellingRestaurants is second to none on valuing and marketing restaurants. Great marketing of a restaurant makes the difference between one that sells for 3 times SDCF and one that doesn't sell at all.

    SellingRestaurants takes the time to perform a detailed financial analysis of your restaurant in order to maximize the selling price. We then advise you on the proper pricing and structure of sale.

2. What are your fees?

There is no charge for valuing your restaurant if you sign a listing agreement with us. Our fees are set by the demand and selling risks within each state. If we don't sell your restaurant, we don't get paid!

That being said, our valuation methods and experience usually results in sales prices which more then exceed our fees.

For example, a large restaurant owner in Chico, California called SellingRestaurants in order to value and sell their restaurant. The seller had another broker value the restaurant at $625,000 with annual SDCF of about $220,000. Our detailed analysis revealed annual SDCF of $307,000. We priced the restaurant at $795,000 and sold it in a matter of weeks at nearly full price. In other words, the seller made more than $150,000 by using our services.

In another example, a boutique restaurant in Folsom was valued by a broker at $250,000 and the broker even brought the seller an offer at that price. The seller called us in to evaluate the business. We valued it at $330,000 and sold it in a matter of weeks for close to full price. The seller sold the restaurant for nearly $80,000 higher than the other broker, more than covering our fee.

Focus on the services and marketing your restaurant will get and not the fee the broker is charging. A good broker can make the difference in getting top dollar for your restaurant.

3. When is the best time to sell your business and how do you get the best price?

Timing is crucial in getting the best price! Obviously, it's best to sell when the restaurant is doing well. If business begins to decline, it can hurt the selling price. However, almost any business can be sold, even if it's not doing well, but it must be properly priced. Our Exclusive Selling Process was designed to professionally package and exposed your business all at once to as many qualified Buyers as possible. This results in the best prices and terms your business can achieve.

 

 

Getting Started

  • Call Us: 800-576-3615
  • Schedule an Appointment
  • Gather Data
  • Sign Listing Agreement
  • Review Appraisal
  • Go to Market
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    About Our Buyers

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    About Us

  • Experienced Professionals
  • Well Trained
  • Helpful & Approachable
  • Honest & Intelligent
  • The Best Place to Buy or Sell a Restaurant, Bar or Nightclub!