Selling a Company Advice
Selling a Used Restaurant Equipment and Supplies Business
We hear it all the time: 'This economy is a hostile environment for a business sale.' However, used restaurant equipment and supplies businesses continue to sell at a brisk pace, regardless of the economy.
Today's used restaurant equipment and supplies business buyers tend to be more skeptical than most about the nation's economic outlook.
The economy hasn't squashed the market for used restaurant equipment and supplies businesses. Like always, unprofitable and poorly positioned businesses struggle to find buyers while sellers who have invested time and effort to prepare their sale are being rewarded in the marketplace.
Preparing Your Used Restaurant Equipment & Supplies Business for Sale
The outcome of a business sale is largely determined prior to a market listing. Successful used restaurant equipment and supplies business sales begin with a comprehensive strategy that incorporates planning, preparation and market positioning. Even though it may take years to adequately position your used restaurant equipment and supplies business, the amount of preparation you perform will have direct correlation on asking and sale prices. It is especially helpful if your financial reports can demonstrate a multiyear growth trend for potential buyers.
How to Skillfully Address Buyer Concerns
Buyers can present challenges, especially during the due diligence stage. The questions used restaurant equipment and supplies business ask during due diligence are designed to alleviate their concerns about the business and should be promptly addressed by the seller. Avoid answering buyer concerns with vague generalities. Instead, be as specific as possible, even if it means doing additional research before offering a response. If due diligence drags on too long, your broker may need to intervene.
Sale Costs
The calculation of your asking price should include a buffer to cover the expense of the sale process. Although they can significantly increase the final sale price, brokers typically receive a 10% commission. Professional consultations can also represent a significant expense during the course of a used restaurant equipment and supplies business sale. Furthermore, your time has value, so you may need to include a personal compensation consideration in your expense estimates.
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