Selling a Restaurant, Catering Company or Café is an emotional and nerve racking experience for the majority of Restaurateurs and Caterers. Having invested years of toil and expended much energy, knowledge and skill in addition to putting their fame and reputation on the line, the emotional connection to their business is often the hardest thing to manage. Of course getting the best price in the quickest time frame with the least anxiety is the desired outcome for the seller, and this is often difficult to achieve with the high emotions attached to the process. It is also somewhat difficult to determine how to sell for the best result, what the process entails and who should represent you?

Selling a Hospitality business is a complex process and requires specialist skills.

1.Significant pre-marketing preparation is required to ensure that when the business goes on the market; all information relating to the business has been collated and presented to the buyer to make an informed decision without creating frustration while waiting to receive information.

We prepare a report on our clients behalf before any commitment is made to listing the business for sale (a nominal fee is charged for this service) detailing all your business information, advising you on ways to achieve the best result specific to your business and an appraisal of the business that is a guide in finalising the marketing price.A formal valuation by a qualified Valuer is available on request.

A business purchase in most cases is an analytical calculation and less of an emotive decision, sound financial documentation is essential.

The selling price is determined by many factors including historical earnings, lease or contract, location, number of days trading, type of operation, and other factors specific to Cafes, Restaurants and Caterers.

2.The Business must be in great shape both internally and externally to achieve the best result.

3.Time on the market is a major factor of the final sale price, therefore it is imperative to get it right the first time to prevent a long and protracted marketing exercise that goes nowhere and without a result.

4.The Consultant / Broker representing you must be able to understand your business and have excellent communication with you and prospective buyers.

5.Agency Agreement for sale of business and Sales inspection report for sale of business are entered into between the buyer (Principal) and Consultant / Broker (Agent) detailing the terms and conditions of sale.

6. When selling, the Consultant / Broker must have exclusivity to the sale of the business as it is essential to ensure continuity towards achieving the best result. Open listings are not advised as it is similar to listing your house for sale with six Real Estate agents, they all accept the listing and it often sits in the window or office draw with little or no effort expended as no one has control or commitment to the selling process.

7.Advertising the business must be carried out in consultation with the seller. The Law states that sellers must not be charged for services nor can Agents receive commissions without being declared up front in the Agency Agreement for sale of Business and funds processed through the trust account. As a Consultant / Broker we place advertising with media outlets on behalf of the seller and the account is settled direct with the supplier by the seller.A marketing plan is developed and a budget is agreed to in advance.

8.Qualifying Buyers is the next step in the process. It is not just about securing a prospective buyer; they must also have sufficient funds for the purchase and the necessary operating capital, required skills and or business acumen to run the business. This could include additional complexities of leases, licences, contracts and franchise agreements having to be assigned. There is no point in perusing the process with a buyer that will not be able to satisfy the terms of the assignment or have the skills to run the business as the sale could fall over on rejection of the proposed buyer by third parties associated with the transaction.

9.Prospective buyers are provided the comprehensive Business Profile of your establishment to make an informed decision, seek independent legal and or financial advice.

10.Organising an inspection needs to be handled with care, we work with the seller to maintain integrity with staff and clients in this process. We do not encourage the seller and buyer to discuss the business unless this is absolutely required as often it creates issues that may affect the selling price.

11.Feedback is essential as we all want to know what is happening. We are committed to keeping you informed on the progress of the sale of your business.

12.Negotiation is everything, we act as the seller’s Hospitality professional representative who has engaged our services, and therefore we represent the seller in that capacity and do not leave the seller to sell the business to the buyer. To achieve the best price careful negotiation is required by skilled and experienced Industry professionals that know the business and work for your interests in achieving the best possible result.

13.Preparation of the Contract is carried out by the seller’s solicitor based on details provided by your Consultant / Broker from negotiations. We also liaise with the solicitors on your behalf as and when required during this process.

14.Settlement is the final stage of in the process, we have undertaken to support you in this process from the compilation of the Business Profile to the stage your solicitor takes over and settlement is complete.

Contact us today for a confidential and obligation free discussion about how to sell your business.