August 11, 2020 is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

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How to Sell to a Business


Selling a Latin American Restaurant

With the economy struggling to rebound, the shadow inventory of Latin American restaurants in the business-for-sale marketplace seems to be rising. That could make this the perfect time to list a successful Latin American restaurant

It's a fact: Successful business sales take time.
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Most Latin American restaurants are good business opportunities, a fact that is not going unnoticed by today's discerning buyers.

Valuation Methods

Professional appraisers can use three methods to determine the value ofa Latin American restaurant: The income method, the asset method and the market method. While the income method uses anticipated revenues as a value basis, the asset method focuses on the company's capital, real estate and intellectual assets. In many sales, the most accurate valuation comes from the market method which determines value based on the recent sales of similar businesses. All three methods have multiple variations and it's not uncommon for appraisers to use a combination of the three to determine the value of your business. Sellers should take note of the fact that all three valuation methods reward businesses that takes steps to increase assets and income.

Are You the Right Person to Sell Your Business?

An unassisted business sale is a double-edged sword. On the one hand, no one knows your business better than you do. When it comes to earnings potential, asset condition, and other considerations, you are the world's leading expert on your company. The problem is that your passion for your business can also sabotage your sale. Nearly all sellers have an inflated sense of their company's value. So in many cases, the introduction of third-party opinions regarding value and negotiation parameters is a fundamental requirement for a successful Latin American restaurant sale.

Economic Considerations

When you sell a Latin American restaurant, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your Latin American restaurant will be on the market as well as its sales price. The truth is that perfect market conditions may never materialize. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a Latin American restaurant, successful sales sales often boil down to the business itself - not the economy.

More Exit Planning Articles

Ready to learn more? You may find these additional resources to be of interest.

Role of Location In Selling a Business

Marketing a Latin American Restaurant

How Much Is My Business Worth?

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