We Sell Restaurants has detailed knowledge and understanding of restaurant pricing and valuation. This is the single most important element of selling your restaurant. Listing your business too high means it will just sit on the market without activity. Listing it too low means you’re giving up potential value. We can determine the correct price.
CASH FLOW METHOD
We Sell Restaurants uses their exclusively Restaurant Valuation Tool to be sure that we are accounting for all opportunities to find cash flow. This cash flow translates to the sales price for the seller. We work on a daily basis with Restaurant profit and loss statements. We understand the appropriate add backs and recast your financial statements using Generally Accepted Accounting Practices (GAAP). From this baseline, we can then apply industry benchmarks and comparative data to reach a valuation.
ASSET VALUATION METHOD
If your restaurant is not generating cash flow, we rely on the value of the assets to help set pricing. While this is much less than you may have originally invested, in most cases, a buyer will not pay a premium if you are not generating cash flow. This is not always the case however, as a restaurant in a prime location with a good transferrable lease may be more valuable than assets alone. We look at all variables in setting a price for assets that will get your restaurant sold including location, value of the lease and comparable sales in the marketplace for assets.
GROSS SALES VALUATION METHOD
There is a last technique by which gross sales may be used as a "rule of thumb" to gauge pricing. This method is rarely used and often by those who don't have the financial skills to conduct a strong review of the business and prepare a valuation. Most buyers want to see detailed profit and loss statements to justify their purchase. There are limited instances where this may be an appropriate method to but generally is only applied when someone is acquiring a location first and foremost for conversion to their own concept.
We Sell Restaurants has experience and education in the valuation process. Our Broker spent a decade as a lender for small businesses and has been designated an Industry Expert in Business Valuation. Our Director of Marketing holds an MBA in Finance and develops all valuation tools.
When packaging your listing for sale, we draw upon our financial knowledge to set the right price. We know the common ratios – food costs and rent percentages so not only can we set the right price for your business, we also use our Business Analysis Tool to show buyers the opportunities for improvement.
We know what other restaurants are selling for. As one of the nation's largest restaurants brokers, We Sell Restaurants has access to business valuation comps for every listing in the states of Georgia and Florida though access to the BizMLS system. We can look at similar size, volume, profitability and pricing to gauge days on market and help determine pricing.
We Sell Restaurants has access to industry comparables for sales across the nation. As one of the identified Business Industry Experts by Business Brokerage Press, other brokers rely upon our modeling to assist in their pricing.
Our professional team has a financial services background that translates into a first class listing and selling presentation package unrivaled by any other firm.Buying a restaurant is a complex transaction requiring skilled professionals.We Sell Restaurants has committed money and resources to this process to insure the transaction is completed as efficiently and quickly as possible.
We have established market dominance for the southeast, listing and selling hundreds of restaurants. Sellers rely on our ability to hit the right price to sell their restaurant. Give one of our restaurant brokers a call to get a valuation of your restaurant today.
Getting Started
Call Us: 404 513 5378 Schedule an Appointment
Gather Data
Sign Listing Agreement
Review Appraisal
Go to Market