How to Buy a Restaurant
1. Seek Out A Business
First step fill out our Confidentiality Agreement along with financial information. along with financial information. We will then give you some general information on the Businesses that meets your needs. Once we have all the paper work properly filled out we will supply you with the locations of said businesses. You will visit the prospective business as a customer during regular business hours so you won’t stand out. Under no circumstances will you ask any questions or talk to any employees. You are there as a customer only. If you have interest in this business, Georgia Restaurant Brokers will set an appointment for you with the Owner (usually before or after closing so as not to let any employee’s know of the sale). You will at that time be able to tour the facility and have the opportunity to ask all the questions necessary. It is best not to discuss the price and terms of sale with the business owner.
2. Find A Realistic Value
Once you find a business that suits your dreams, it’s necessary to come up with a realistic value. There are two types of sales, the first is an asset sale or a distressed sale (anywhere from $20,000 -$75,000) basically for the equipment, lease anything of value. The second is a profitable business sale, which must be formulated through cash flow. That method can be anywhere from 1 to 3 multiples of the net. For examples, if a business nets $ 100,000 a year and the multiple is 2 the value of the business is $200,000. There are also other variables that must be added to the equation, such as the lease, location, how much equipment, name, concept and good will are just a few things that should be factored into the sale.
3. Seal The Deal
The Closing process will be a walk in the park. Georgia Restaurant Brokers will get a closing attorney to conduct lien searches, draw up bill of sale and other closing documents for the parties to review. A cashiers’ check will be required at closing for whatever amount is due. Georgia Restaurant Brokers will coordinate the buyer, seller their advisor’s, landlord, the attorney and anyone else involved with the transaction.
Buying an existing business can be a very wise decision for a true entrepreneur. A proven track record, experienced employees, good suppliers, loyal customers and the ability of financing, makes buying a profitable business easier and safer than other investments. Georgia Restaurant Brokers will help you fulfill your dreams, owning a successful business.