Top 3 Restaurant "Deal-Killers"
Don't overlook these three keys, or your deal may go down the tubes!
- TOP 3 RESTAURANT DEAL KILLERS
- Real estate lease. The sale of your business is a ‘profit opportunity’ for the
landlord. If you’ve been a great tenant, WHY would the landlord WANT to transfer
or release you? So …. Start early:
- a) If you have less than seven years left on your lease, get an extension or an
option to 10 years, or longer before you go to market - b) Discuss with your landlord that you are considering selling. Determine
their attitude to a new tenant and new lease (or the assignment of the
existing lease).
- Liquor license. A purchaser must meet several basic requirements to obtain
Texas food-beverage licenses. Consider the use of an experienced liquor license
agent …. They will save time and reduce your stress.
- a) Texas resident for minimum 1 year
- b) No felony convictions
- c) Must be able to post bond
- Financing. Your Income Tax returns are the deciding factor in bank financing.
Yes, you may have been expensing all types of non-business items and, to the extent
that they are provable and verifiable, a purchaser and his/her lender will accept
these add-backs.
- a) Commence immediately reporting all sales and expenses accurately to the
government. Good financial records are essential. - b) Make sure all required tax returns have been filed.
- c) Have your accountant prepare an interim financial statement, accurately
showing the business in its best possible light.
And, while we’re at it, here’s a few more general pointers:
 | Be a ‘nice guy’ to your landlord, neighbors, bank, and city/county/state officials | |
| Aggressively promote your business to build sales. It is in your best interest to | |
| increase sales as much as possible to get the best price and the quickest sale. | ||
| If you were selling a car, you would have it detailed. Do the same with your | |
| restaurant … Fix up, clean up, and paint up; by spending hundreds you will return thousands! | ||
| Take care of your key employees. Turnover is notorious in our industry … the | |
| longevity of a few key people within your business will increase its attraction. |
MegaBite Restaurant Brokers
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| email us: CLICK HERE or send to: info@MegaBite-RB.com call us: 214-405-0385 |