Likely Buyers
- Multi unit operatorWants another location and a proven menu to add to a group.
- Experienced restaurateurKnows food costs and labor and wants a venue with a license and loyal regulars.
- First time buyer with SBA backingDreams of ownership and will lean heavily on the seller for training.
Provable cash flow
Buyers pay for earnings they can prove, not cash that never reached the books. Hiding income to save about twenty percent in tax can cost two or three times that amount in lost sale value.
Most Main Street businesses sell for two to three times owner cash flow, and restaurants fall in that range when the records are clean.
The lease is half the deal
A location business depends on its lease. Buyers want years left, fixed rent and assignment language that says the landlord cannot unreasonably refuse.
A short or month to month lease puts the whole venue at risk, and landlord approval can take weeks, so start early.
Licenses stay behind
Alcohol licenses do not pass to a buyer. A new owner applies for new licenses, which affects the closing date. Our alcohol licenses guide covers the steps.
Staff and equipment
Buyers ask which cooks, bartenders and managers have stayed and whether the kitchen runs when you are away. Tell staff close to closing, not months before.
List equipment with age and condition, and settle what stays. Leased gear and liens need payoff letters.
Before you list
- Three years of sales by month
- A food and labor cost summary
- Your lease with any renewal options
- An equipment list and liquor license details
Cleaner books raise the number, so read add backs buyers accept and then find your price range.