As a broker, I have we have a fiduciary responsibility to put your business in the best possible light and get you the highest possible price for your restaurant business. We take this duty serious. Most of the time we're right with commanding a higher price for your restaurant business and sometimes we're not.
We recently were sitting with a business owner who owns two quick serve restaurants in Northern California and has been trying to sell them for FOUR years through a popular restaurant broke in the San Francisco Bay Area. This broker never prepared the business for sale. He never prepared a proper valuation analysis to get to the true earning of the two businesses. Nor were the businesses ever advertised as being profitable.
We gathered all the information this owner had. He kept great books and had tax returns showing solid profits. We prepared a detailed analysis of his financials and presented him with our valuation analysis.
He was impressed to say the least. He had these businesses listed with the San Francisco restaurant broker for FOUR years!!! The broker brought him 2 offers in that time. One was for $160,000 and the restaurant broker hard-pressured him to take it. He rejected it. Smart move!
And rightfully so! The cash flow for the businesses when he originally listed with this broker was over $180,000!!!
But with the weak economy, the profits have dropped to the $135,000 area. These are tax return profits with NO fluff!
We value the stores at $300,000 and a prime candidate to an SBA loan with 20% down. We obviously believe we can sell it, and we will!
But at SellingRestaurants.com we have your best interest at heart, which is our duty as brokers. We put you in front of profit.
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.