Tips for Buying an Existing Restaurant

Tips for Buying an Existing RestaurantKimberly Deas / William YankeeBusiness Transfer Specialists904-571-9580

1Welcome. Im Kimberly Deas and with my Partner Bill Yankee we work with business owners and professionals to transition businesses with Murphy Business and Financial Services. Buying a Restaurant has Risk#1 Business to failLike an on-demand manufacturing plantRisk can be mitigated by buying existing restaurant opposed to starting a new. www.SellYourBusinessFlorida.com 904-863-6655

#1: Qualify YourselfJust because you can cook, doesnt mean you should own a restaurant. Do you have skills to run a restaurant? Do you have capital to keep it open? Do you have enough cash to buy a GOOD restaurant?

www.SellYourBusinessFlorida.com 904-863-6655#2: Understand What You are BuyingNot every owner is forthright with information. Why are they REALLY selling? Are they highly motivated and WHY? What assets are being sold with the business?

www.SellYourBusinessFlorida.com 904-863-6655#3: Do Your ResearchKnow what are you REALLY buying!What do others say about them? Is the business mismanaged? Is there an innate problem with the business (competitors, pending road construction, etc.)

www.SellYourBusinessFlorida.com 904-863-6655#4: Location, Lease and LandlordThe current owner will leave the business after the sale, but the landlord is there to stay. What are the landlord requirements? Is the lease more than 10% of revenues?

www.SellYourBusinessFlorida.com 904-863-6655#5: Understand PricingRestaurants are priced on either value of assets or cash flow. How did the owner come up with the price? Is the owner offering seller financing? Is the current owner reporting all cash sales? Can they prove cash sales? Is there a broker involved?

www.SellYourBusinessFlorida.com 904-863-6655Advantage of 1 Broker vs. Many Brokers For Buying a Restaurant1 BrokerFOCUS, FOCUS, FOCUS!!Broker completely knows you and your needsAccumulated knowledge of your interestsBusiness Advisor to guide processInsight to Early ListingsManyNo FocusKeep retelling your storyNo broker looking for youIf talking to every broker, some brokers might not work for you.

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The business owner is an expert at running the business but may not be as knowledgeable about the selling process. An intermediary can assist the business owner reach their goal of a successful transaction.FacilitatorProcrastination and delay are critical factors when structuring a deal. Therefore, a business broker will continually move the process forward with qualified buyers, financing resources and ancillary associations to the deal such as CPAs and attorneys. a business broker is in a better position to perform this function than the owner as he/she is focused on the life cycle of the deal. The owner will be allowed to focus on operating a profitable business.NegotiatorSelling a business is often emotional for the business owner. An intermediary will act on behalf of the owner and will establish a strong negotiating position without compromising the goodwill and relationship between the principal parties. An intermediary will increase the opportunity to receive the best price for the business.ResourcesA business broker is a skilled professional in the mergers and acquisitions world and has established relationships with many professional organizations which are required to complete the transfer of ownership. These relationships will prove to be extremely beneficial to the business owner and the buyers.ConfidentialityAn owner could experience disastrous results by leaking that the business is for sale. Employees, customers, suppliers and competitors' relationships could be damaged causing an adverse condition hurting the potential sale. A business broker will preserve the confidentiality of the selling company during the process of marketing the business and only share information on a need to know basis.AdvisorAs an intermediary, a business broker will provide the business owner with strategic information regarding market timing, market conditions, market price, financing options, structuring the transaction and other information that is advantageous to the owner.

8Working with a BrokerTo QualifyComplete intake interviewComplete Personal and Financial ProfileProvide ResumePre-qualify for purchases (as needed)Complete NDAs in timely fashionProvide feedback on each business evaluated

www.SellYourBusinessFlorida.com 904-863-6655Sellers expect us to bring a qualified buyer for their business

9Why Use Us? High Level ProfessionalismConfidentialDedicated Networks of Brokers to find ListingsResponsiveExperiencedPartnership Creates more Results

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www.SellYourBusinessFlorida.com 904-863-6655SLOW!!!

We are the premier brokers in Jacksonville and we would encourage you to talk with others brokers to see our difference.

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