selling a restaurant or business

 
Selling a Restaurant or Business


Please download the following document:
(to download, right-click the link and select Save Target As...)
Sellers Confidential Details...
 
BC Franchising Consultants will represent our client, the restaurant/business owners wanting to sell their restaurant/business, in all facets of the sale process. Both our client’s and the businesses confidentiality is protected throughout the entire valuation appraisal, business analysis, marketing and selling of the business. We have the necessary skills and experience to market your restaurant or business and negotiate price and conditions.

Valuation
We determine a market value of the business and establish a value to the business that will optimise a satisfactory return-on-invest (ROI) to the Buyer. BC Franchising Consultants will furnish the Seller with a written valuation on the restaurant or business, provided all requested information is supplied.

Presentation
We prepare a detailed presentation on the restaurant or business to assist with marketing to the potential Buyer. The Presentation represents financial information, and information on leases, management and staff, menus, marketing programmes, and franchise details if applicable This Presentation is used to market the business without compromising the confidentiality of the Sellers. This Presentation can usually be used to assist any financials applications for funding.

Selling
We have a listing of qualified Buyers that have approached and signed up through our network, or through existing clients, our various marketing media advertising or through our web page. We advertise only when we cannot match business to our current Buyers. We ascertain financials status of the Buyer, areas of interest, particular restaurants/businesses requirements and applicable business experience. We will always endeavour to match the right Buyer with the right business prior to disclosing of confidential information.

The Sale Agreement and Negotiating
“In business you never get what you want, you get what you negotiate”. We assist through the negotiations of the sales agreement, terms and conditions, price and date-of-takeover. We provide a Sales Agreement for your use in the sale, and assist in the proper documentation and application for all legal requirements. We carefully supervise each step of the sale process, from signing of the agreement, to lease negotiations, lodging of deposits and up to the hand-over so we can ensure that all requirements of the sales agreement are adhered to.

Ten Points of Advice from BC Franchising Consultants

  •   Ask for a realistic price. Although the Selling Price Valuation is determined by a number of variables, emotional attachment is excluded as an influence. The Buyer does not yet have the same emotional attachment to the restaurant or business and so will fail to reach the same value. If the asking price is too high, you will deter potential buyers from making an offer for fear of offending you.
  •   Keep proper records of your finances of the business and have up to date Income Statements, copies of your lease, copies of VAT returns etc. Buyers often lose enthusiasm when they have to wait for documents to be produced.
  •   Keep up with repairs and maintenance of the premises. Buyers will request a viewing of the restaurant or business before or after trade hours without staff present and will notice equipment and fixtures and fittings in need of repair. When you sell your car, you service it, mend it and get it washed, vacuumed and polished to enhance the selling price. This is a similar transaction.
  •    Let your attorney read over our Sale Agreement and advise you accordingly. Our Sale Agreement is used on most of our transactions, but we still encourage input from your legal advisors for your best interests. Attorney’s fees in reading a prepared document are far more economical to you than the drafting of a new document.
  •   Make sure your premise and equipment leases are transferable before you consider selling. Many potential sales have terminated because Landlords refuse to assign a current lease or draw up a new one. If your remaining lease term is short, negotiate a new lease prior to offering that business for sale.
  •   Ensure that the sales and Income Statements (or Management Accounts) declared to buyers are verifiable. The Buyer will conduct a Due Diligence investigation to verify all financials presented for accuracy. Don’t waste your time falsifying these figures as this will not achieve a better price, only a few months of wasted time.
  • Always reduce any verbal agreements to writing, as you can always remember what you signed in a document. Even after you have signed the Sale Agreement with the Buyer, it’s important to write up and sign any amendments or additions.
  •   The deposit lodged by the Buyer that is held in an attorneys trust will only be paid to you together with the full purchase price on the day of take over, or “Effective Date”. No payment = No keys. Possession is 9/10th of the law so never permit the Buyer occupation until full payment has been made and cleared in your account.
  •   Trust, but verify. Ensure all accounts and services transferred to the Buyer have been complete and debit orders cancelled off your account.
  •   Never let your staff or customers know of your intention to sell. BC Franchising Consultants will endeavour to maintain the confidentiality of the sale, and adhere to procedure that allows potential Buyers to view the restaurant or business as customers during trading hours and also after hours without any staff present. We constantly remind Buyers not to approach any staff, management or owners in connection with the sale. BC Franchising Consultants will be the conduit in all dealings with the Buyer.
 
Copyright © 2007 BC Franchising Consultants