Optimizing Business Exits
Selling a Restaurant Food Products Business
You've learned a lot during your tenure as a restaurant food products business owner. Before you walk away, you have one more challenge to overcome: A successful and profitable business sale.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to restaurant food products businesses that exhibit strong financials and potential for future growth.
Economic Considerations
When you sell a restaurant food products business, there are a number of variables you need to consider. Interest rates, spending, inflation, and other variables directly influence how long your restaurant food products business will be on the market as well as its sales price. But at Gaebler, we advise our business partners to look beyond simple economic data when determining whether it's the right time to sell a restaurant food products business. A much better approach is to focus on the factors that always attract buyers and investors. When it comes to selling a restaurant food products business, successful sales sales often boil down to the business itself - not the economy.
Pros & Cons of a Sale to an Employee
Although it may seem easier to sell your restaurant food products business to an employee, this approach also has some pitfalls. A faithful employee may have the motivation and ability to continue to operate the business. The time and expense of locating the right buyer will be nonexistent and you won't have to spend weeks showing the buyer every square inch of the company. Yet most employees lack the means to buy their employer's business at or near the asking price. Most of the time, employees also expect owners to finance a large portion of the sale. So if you aren't willing to finance the sale or need to get top dollar for your restaurant food products business, a sale to an employee is probably not a possibility.
Adjusting Expectations
When you made the decision to sell your restaurant food products business, you had a specific set of outcomes in mind. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Sometimes, sellers need to readjust their expectations to accommodate market realties. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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