Sell a Business Tips
Selling a Soul Food Restaurant
The sale of your soul food restaurant is the culmination of this stage of your entrepreneurial journey. Although most business owners expect a storybook ending, it will take the careful application of sound selling principles to bring your sale to a successful conclusion.
The buzz in the marketplace is that now isn't the right time to sell a soul food restaurant. Consequently, sellers are holding their businesses off the market until they are sure the market will sustain their asking prices.
You'll always have an excuse for not putting your business on the market. Selling a soul food restaurant isn't easy, but we believe sellers can achieve their goals in any economic environment.
What to Expect in a Soul Food Restaurant Sale
It's impossible to predict the emotional highs and lows you will experience during the sale of your soul food restaurant. Given your personal investment, you may also experience disappointment in the market's assessment of your company's value. You can prepare yourself by talking through your emotions with friends and family members, and thoroughly evaluating your minimum requirements before you put your soul food restaurant on the market.
We run into a lot of soul food 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. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your soul food restaurant may be a waste of time.
Professional appraisers can use three methods to determine the value ofa soul food 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. Using recent soul food restaurant sales as its foundation, the market method factors market conditions into the valuation process. 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.
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