We're an experienced, professional, and confidential Restaurant and Fast Food Brokerage Company with an A+ rating at the Better Business Bureau.
Yes, we sell restaurants! Actually, "We don't just sell restaurants, we help people like you buy them"! The reason we say this is that it is very complex buying a restaurant. We're not selling cars so when a car dealer in a commercial says "we help people buy them" we have to chuckle, because cars are not that complex. Restaurants require certification, council meetings, selectman meetings, health dept, fire dept, landlords, leases, lawyers, banks, permitting, and thats just for starters. Just think the hundreds of restaurants that you have eaten at have all had to go through it. We actually help you through the process.
Are we the leaders in the industry? Absolutely not. Are we number one? Of course not. Are we the largest Restaurant Brokerage Company in the USA? Sorry, no again! It's not a contest. Any company that says "We're the biggest, we sold the most, 150 years experience, walk away, no, run, as fast as you can.
We're not number one, we do not claim to be leaders in the industry, what we are is, an honest, hard working company, with years of experience that will sell your restaurant with confidentiality and professionalism! Yes, we will get you out, and do it for the lowest fee and pain in the industry (Our 3/5 plan.)
Naturally, this all depends on your mitigating factors. gross sales, condition of your equipment, space, parking, your lease, your concept, your financial health and your landlord! These are the top bullet points that dictate what you can and will receive for a sale price from potential buyers.
As Restaurant Brokers, we refuse more listings then we choose to take on. It makes little or no sense to take on a listing, if it doesn't make logical sense. The business will usually just sit on the market and generate no interest. The longer your business sits on the market and doesn't sell, you risk your customers or employees finding out your business is for sale. If your business doesn't sell for a long time buyers tend to think there is an underlying problem. The object is to try to find a qualified experienced buyer fast! Restaurants take time to sell, they're not a necessity like food, clothing, and shelter. Add the fact that there are many food and beverage business to choose from makes selling your business, a challenge. We have an extensive database of buyers and sellers from years of selling restaurants, with many new callers everyday. We do not sell Gas Stations, Beauty Salons, auto body shops, dry cleaners, just Food & Beverage Businesses.
Food, menus, customer service, concepts and equipment can always be improved upon. No parking, bad landlords, troublesome partners, high rent, and terrible leases cannot. No one wants to be working for the landlord, and if you're in a predicament like this we'll tell you this right up front. A lease assessment and or negotiation require knowledge and experience. Lawyers, Landlords, and leases are the three biggest deal killers in our industry. Often, hectic schedules of attorneys frustrate buyers and sellers to no end. High rent and landlords refusing to negotiate also infuriate buyers and sellers, and will often kill a deal.
Please understand Food & Beverage transactions usually take a good amount of time to process. We work around other peoples schedules, Attorneys, City Hall, Selectman Schedule, ABCC Schedule, Accountants, the list is endless. This is why when we take a listing the duration of that listing is a min of 6 months. Frustrated inexperienced buyers often cancel or back out of a transaction because they're unaware of these facts. There is a 30 day period for all deposits returned on canceled transactions.
So, there's an assessment of your business on top of an evaluation that needs to take place during the listing process. Do you have a troublesome, hard to deal with partner? Is your wife emotionally attached after years of operating your business? Do you owe money to the DOR? Are you behind on your rent? Are your Real Estate taxes up to date? So, if you owe, how much are you behind? Are your numbers verifiable? We understand these are very personal questions, however, if your broker does not ask them, a buyer might, and you will be working your tail off for two months with a good buyer, only to have your offer die a dismal death before the closing if he or she doesn't like the answer. Selling your restaurant is easy, getting the buyer to the closing table is another whole story.
We disclose and publish these reference points for you to help educate you at your listing appointment. Other brokers would not even dare to disclose or ask these so called deal killer questions, (well they may now that they have read this). We hear it from customers (listing sellers), all the time. "Our broker never mentioned these questions". Some brokers will just take your listing, sit back and hope they get lucky. See for yourself! look around! Check things out! Most Restaurant Brokers are ok, but what some brokers are good at, is passing someone's headache or problem (if they have one) onto someone else, without first eliminating or fixing the problem. This is not good if you're providing any owner financing, because you will never collect your money if there are hidden problems that arise after you sell.
An over priced business is a problem. Owing the landlord a great deal of back rent is a problem. Owing the Department of Revenue a great deal of money is a problem. (You will need to provide to the buyer a Certificate of Good Standing showing you owe no back meals taxes). Paying 10% or higher of your yearly gross sales in rent is a huge problem. Brokers, let alone Buyers don't like surprises like this. These types of surprises usually end up rendering your business unsellable, (unless fixed which they can be). If not addressed, issues such as the ones mentioned above will kill a deal before the closing, usually after a substantial amount of work has been done by you and the broker. If you think hiring a professional is expensive, wait until you hire an amateur!!
In today's market buyers have a lot of choices. Restaurants that are for sale usually will not attract qualified buyers without some form of creative owner financing. Sellers who create an attractive deal, or the best deal will sell quickly in this market, this is a fact! Why would a buyer give you all cash $$$ when he can buy another restaurant doing a higher volume then yours with close to no money down? These are the options that buyers have out there today. Most sellers want to ensure that the new buyer succeeds by keeping the down payment low so the buyer has sufficient reserves and increases the chances of success!
Sellers tend to shape the industry's values. What they can tolerate for a threshold level of pain is usually the so called (COMP). In the housing market. It is such a bonehead theory.
Example: Your neighbor sells his house across the street for $$400K (it's just like yours equal square footage) this makes your houses value ($400K). Believe it or not this is how they establish value in the housing industry (Prior Sale Amounts within 3 miles otherwise known as a COMP). So when the bubble pops it pops fast. In 2008 when the housing crises hit, the value of a home appraised at $600K in ONE DAY dropped to $100K. People lost everything because of crooked banks artificially inflating the value of homes with crooked appraisers so they could lend more money in refi's and cash-outs. Then when the values of those homes plummeted, the banks repossessed them! That's right, kicked the borrowers out of their homes. Not one person did any jail time for bilking America out of trillions of dollars at these lending institutions. So the lesson here is, your place is only worth what someone is willing to pay. They're not buying the memories, nor are they buying your emotional attachment, they're buying the current sales that can be verified week to week at the time of the sale, PERIOD! I'ts the terms you create that will equate in you getting out quicker.
They're (not buying potential) You cannot sell potential, not yet anyway.
NERG will soon be launching an alternative marketing strategy for those of you who want to do it on your own without paying a broker fee early 2021. ZeroBrokerFees.com (tm), and ISoldMyRestaurant.com will be launching spring of 2021.
The New England Restaurant Group Staff! (C) 2019