Exit Planning Advice
Selling a Korean Restaurant
We hear from a lot of business owners who are timid about listing their Korean restaurant. Despite the mood of the market, we think there are still opportunities to receive a good price for your Korean restaurant. Here's what you need to know . . .
Selling a Korean restaurant isn't as simple as listing a power tool on eBay. These days, the business-for-sale market is a hostile place for inexperienced and uninformed sellers.
The economy hasn't squashed the market for Korean restaurants. Not surprisingly, buyers expect to receive value for their dollars - and that means sellers need to demonstrate that their businesses are capable of delivering anticipated returns.
The Best Person to Sell Your Korean Restaurant
An unassisted business sale is a double-edged sword. Without a doubt, you have the most at stake in the outcome of your sale. That makes you the most passionate advocate for your Korean restaurant in the business-for-sale marketplace. However, your close connection to your company can also be a drawback. Nearly all sellers have an inflated sense of their company's value. Business brokers and other third-party consultants bring objectivity to the sale process and give you much-needed insight about buyers' mindsets.
Professional appraisers can use three methods to determine the value ofa Korean restaurant: The income method, the asset method and the market method. The income method determines value based on the amount of income the business is expected to generate. The asset method, on the other hand, is based on the value of tangible and non-tangible assets (e.g. brands and trademarks). In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.
Preparing Family Members
Many sellers embarked on their Korean 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. The sale of the business will likely result in new family dynamics. To keep the family intact, the sale of a Korean restaurant has to include ample communication and shared decision-making.
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