Operating a grill can be a fun, rewarding business. But, like any restaurant, a grill can demand long hours and hard work. When you are ready to sell your grill, you want to make sure you are compensated for the time and energy you put into the business.
Instructions
1. Organize your books. Because a grill can be a heavy cash business, especially if you also operate a bar, it is easy to become sloppy about bookkeeping. But a potential buyer is not interested in taking your word on revenue and expenses; he will want to see quality, detailed accounting records. Try to have solid accounting records for the past 3 years, or as far back as you can go. And if you are paying waiters, waitresses or bartenders under the table, stop. A potential buyer wants an accurate estimate of labor costs.
2. Fix obvious problems with your grill. Start with maintenance. If a potential buyer sees that your restaurant needs paint, new cooking equipment or signage, it will be difficult to get your asking price. Also try to improve your sales figures as much as possible. If Tuesday is your slowest night of the week, consider offering two-for-one specials or happy hour discounts. Your grill becomes more attractive to a buyer if you can show sales are trending in the right direction.
3. Get your business appraised. Look for an appraiser in your market who has experience with restaurants. There are many different methods for appraising a business, and they tend to differ depending on your industry and whether your business is profitable. For example, if your grill is profitable, the appraisal will probably be based on a multiplier of your net earnings (another reason to have good revenue and cost records). If your grill is losing money, the appraisal could be based simply on the value of your land, the building and the kitchen equipment and fixtures inside. In either case, your appraiser will want to see your facility, its equipment and your accounting records. Make sure you understand the method your appraiser is using and that you are comfortable with it.
4. Approach buyers who would be a natural fit. You may have the chance to sell your grill quickly by directly contacting logical buyers in your market. Perhaps there is a successful grill a few towns over that may consider adding a second restaurant. A national chain, such as Chili's or Applebee's, may find your location interesting. These chain restaurants tend to have corporate development departments. Before showing accounting records, always make sure a potential buyer signs a non-disclosure agreement.
5. Hire a business broker. Look for someone with experience selling restaurants in your market. Restaurants often change hands, so this should not be a challenge. Before you hire any broker, make sure he explains exactly how he intends to market your business. Make sure your broker is prequalifying buyers. You don't want to waste an afternoon showing your restaurant and books to someone who has no chance of putting together the necessary funding.
6. Be flexible on financing. If you are willing to hold some paper on your grill, a potential buyer will need to borrow less from a bank. This could attract more buyers. It's not always easy to get funding to purchase a restaurant business, since the market can be unpredictable and because so many restaurants are not profitable. You may end up holding some paper whether you want to or not.
7. Keep running your grill. Once they have decided to sell their restaurant, many grill owners mentally check out. They stop managing their businesses aggressively and may even spend less time at the grill. This is a big mistake. If you start showing negative trends in your sales or profitability, you may scare away potential buyers. No one wants to buy a grill that is headed in the wrong direction--particularly given the historic unpredictability of the restaurant market.
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