The business brokerage industry has an image problem because there are so many brokers not qualified to sell restaurants let alone businesses. But at SellingRestaurants ourt agents are trained to do one thing, sell restaurants and bar.
Since 2004 we've sold nearly 500 restaurants, so I think we know what we're doing. But the first thing we must do as brokers is gain the buyer's trust and we do that by listen to the buyer's needs, understanding and addressing their concerns through the buying process.
But the first step in successfully completing the buying of a restaurant is to select a qualified and honest broker to help you. That's where we come in. I train my agents to be fair and honest to the Nth degree. Now we do represent the seller from a legal stand point, but we have an absolute duty to be honest and truthful in our dealings with a buyer of a business. Our belief is first we're not here to sell you something you don't want of need. I have talked buyers our of doing some deals to be frank. Second, we're in this business for the long run and want you as a client for life. That's why 30% of our listings are from referrals and past clients.
The second step is to educate yourself on the process. I have written dozens of article of buying a restaurant business and what to look for during the process such as understanding the lease and your rights and obligations under the lease or understanding succession liability issues and getting the business cleared of tax liabilities.
On area that buyers often neglect is the inspection of the equipment and premises. They do it their self to try to save money. In the end, they always regret it. I had one client buy a restaurant and do their own inspeciton only to have to invest thousands into fix faulty equipment when they took over the space.
Finally, know how to read financial statements and understand what owner cash flow means. CPA are fine people, but to be frank, most of them don't know how to value a business nor how to determine the true cash flow of the business.
So get educated on these issues and you'll have a smoother purchase transaction and you'll be a happier buyer!
We at SellingRestaurants feel obligated to educate the public, our customers and our clients with information that can help them make more intelligent buying and selling decisions.
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or e-mail him at [email protected] if you have any questions.