When is a good time for selling a restaurant?
There are many factors that would call for selling a restaurant business immediately, such as health problems, family issues, plans to move, or bankruptcy. If you have the option, the absolute best time for selling a restaurant is when there is cash flow. Cash flowing restaurant businesses are heavily sought after in the marketplace. Buyers will always pay considerably more for a profitable business over an unprofitable one. It’s best to sell when business is strong than to wait around and risk the possibility of the business softening down the road.
How much money should I expect when selling a restaurant?
Just because you may add a $100,000 pool to your backyard, it does not mean that your house will go up $100,000 in value. The same applies to a restaurant business. If an owner spends $300,000 on a costly build-out and equipment, it will not affect the value in the same way the owner hopes for. If the business is not profitable, the owner should only expect to recover a fraction of their costs. If the business is profitable then the owner has the potential to recover their costs and more depending on how much the business cash flows.