You won't find any magic formulas for selling an African restaurant, especially while the market is struggling to overcome the perceptions created by a down economy.
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Despite the overall mood of the marketplace, African restaurants are still an attractive investment, especially when sellers have invested time and energy in preparing their companies for a sale.
Tips for Seller Financing
Capital is hard to come by these days. Financial institutions have tightened up their lending policies, making it difficult for inexperienced and undercapitalized entrepreneurs to buy African restaurants. As a result, buyers expect sellers to finance a significant portion of the sale. It's common for sellers to finance as much as 70% of the purchase price with a payoff period of four or five years, sometimes in the form of a balloon payment at the end of the repayment period.
Preparing Family Members
Many sellers embarked on their African 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. Subsequently, selling an African restaurant has to include ample communication and shared decision-making.
In an African restaurant sale, the Letter of Intent contains the vital elements of the deal between the buyer and the seller . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. Never sign a Letter of Intent until it has been properly reviewed by your attorney and you are in complete agreement with everything it contains.
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