Exit Planning Advice By Market

Selling an American Restaurant

With the economy limping along, many American restaurant owners are hesitant to put their businesses on the market. At Gaebler, we think it's a great time to sell an American restaurant. Here's why . . ..

You survived all the ups and downs of owning a business. Next, you'll need to prepare yourself to address the rigors of selling an American restaurant.

Growth-minded entrepreneurs also find an appealing American restaurant hard to pass up. Financial statements and ROI are essential in converting modern American restaurant prospects into buyers.

Preparing Family Members

Many sellers embarked on their American restaurant sale without adequately considering the impact it will have on their families. Unfortunately, families often experience turmoil during a sale even when the primary owner is convinced it's the right decision. Unless everyone is prepared for it, the sale could have a devastating effect on your family. Subsequently, selling an American restaurant should allow opportunities for all family members to share their feelings and offer input about the sale process.

Selling to a Family Member

There is no easy way to sell an American restaurant, not even to a family member. In fact, selling your American restaurant to a family member can quickly become a no-win proposition. If you refuse to discount the sales price or offer other concessions, it could create a rift with the buyer. But if you give in to the buyer's demands, you risk alienating family members who may feel the buyer is receiving an early inheritance. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.

Sale Costs

In an American restaurant sale, pricing is based on a number of factors, including the costs incurred during the sale. Good brokerage takes a 10% success fee off the top of the final sale price. Professional consultations can also represent a significant expense during the course of an American restaurant sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.

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