December 3, 2020  
 
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Selling a Portuguese Restaurant

The decision to sell your Portuguese restaurant isn't something that should be taken lightly, especially these days. If a business exit is on the horizon, you'll want to check out our suggestions for staying ahead of the market.

We're seeing a high volume of shadow inventory in the business-for-sale market.
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There are many factors involved with the decision to sell a business. Knowledgeable entrepreneurs understand that market timing isn't nearly as important as other factors in a Portuguese restaurant sale. To improve sale outcomes, you will simply need to tailor your Portuguese restaurant to today's buyers.

Average Preparation Time

Preparing a Portuguese restaurant sale takes time. Since buyers prefer to see evidence of future cash flow, you'll want to to strategically lock in cash flows and increase profits before you list the business. Next, the business will need to be documented in professional financial statements and manuals that facilitate the ownership transition. At a minimum, plan on spending six months preparing your Portuguese restaurant for the marketplace. A more likely scenario is that it will take more than a year to create the conditions necessary to receive the maximum sale price.

Business Valuation

Professional appraisers can use three methods to determine the value ofa Portuguese restaurant: The income method, the asset method and the market method. Appraisals based on the asset method gauge value as a factor of the company's real property and non-tangible assets; appraisals based on the income method consider the business's anticipated revenue. Finally, the market method determines the worth of your Portuguese restaurant based on the sales of similar businesses in your geographic area. A good appraiser will often use multiple valuation methods to arrive at a reasonable estimate. But regardless of the method that is used, it's always in the seller's best interest to increase revenue and asset values prior to a sale.

Legal Concerns

We run into a lot of Portuguese restaurant sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. For sellers, that makes a close review of the Letter of Intent more than a formality - it's a critical juncture on the path to closing.

More Exit Planning Articles

We think you may find these additional resources to be of interest.

Marketing a Portuguese Restaurant

Selling Part of a Business

Pre-Exit Employee Incentive Programs

Renewing Leases Prior to Selling a Business


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