What's the best way to sell an est. business?

[D.H. Jenkins]

What's the best way to unload a working business? My mother has owned/operated a restaurant for 27 years and is burned out.

The business itself grosses approx. $600K/year, owes less to vendors than what's in the bank and generates plenty of business without any meaningful advertising (or effective management of any sort).

The place could be a real moneymaker for someone who *likes* running a restaurant - after almost 50 years in the industry, however, there's not a single person in our family who does.

[Bill]

I would think that the first people that she should talk to would be some of her vendors. They may know of other customers that are looking to expand thier own business. If your mother's business is in as good shape as you say it is, her vendors could be her biggest cheerleaders. They would also have a vested interest in helping her find a buyer who would continue to be a customer of theirs.

[Chin nuts]

I would think that the first people that she should talk to would be some of her vendors. They may know of other customers that are looking to expand thier own business. If your mother's business is in as good shape as you say it is, her vendors could be her biggest cheerleaders. They would also have a vested interest in helping her find a buyer who would continue to be a customer of theirs.


Great advice Bill.

After that there are many business brokers that would be more than willing to list your business. Keep in mind they get a percentage of the deal but they're almost always negotiable.

[D.H. Jenkins]

If she didn't rely so heavily on the "no hablo ingles" variety of vendor (which is common in San Antonio, since they usually have the freshest stuff), that would definately be an option.

Chin reminded me that I have a relative who's a commodities broker, who I just called. Apparently his partner used to be a business broker, so it looks like the situation may be handled...

It's almost disturbing how helpful this place is - thanks baggots!

[Bill]

Is it fair to assume that your mother has already offered the restaurant to any employees who might be interested in buying it?

[D.H. Jenkins]

Sadly enough there's only one employee who might be able to handle it, but she's not in the financial position to make an offer having recently purchased a new home (and every other employee lives check to check).

[Chin nuts]

Sadly enough there's only one employee who might be able to handle it, but she's not in the financial position to make an offer having recently purchased a new home (and every other employee lives check to check).


Well if you can swing it there's nothing like "holding the note" and let them pay you off monthly with interest of course. Then if they default you can kick them out and start all over again. Get a sharp Lawyer to draw up the papers though. Good Luck!!!

[Bill]

Well if you can swing it there's nothing like "holding the note" and let them pay you off monthly with interest of course. Then if they default you can kick them out and start all over again.

I was going to suggest that. But it sounds like D.H.'s mom is ready to retire and live the good life. The last thing that she needs is to have her successor default and then have to back to running the business while looking for a new buyer.

I know two people who had that exactly that happen to them a year or two after selling their bars. In one case, it wasn't so bad because he kinda wanted to get back in the business for a few more years anyway. But it really sucked for the other guy.

[Sevenyars]

gallon of gas and a match

[JonBenetRamsey]

ebay

[Bill]

gallon of gas and a match

Absolutely not. The value of a good business is much higher than the value of the building, which is what insurance would pay.

Gasoline and a match is the answer for how to get rid of a failing business.

[DonTheTrucker]

Do NOT, I repeat DO NOT hold the note on this. Unless you're in the business of banking you do not want to carry paper on a business sale.

If the business fails after you sell it, chances are the reputation is going to be shot to hell and you'll be stuck with a problem. If you don't want to run the business anymore, figure out how much your equipment it worth, what the real estate is worth and how much profit you turn. Then decide what you would want for the whole package. Once you sell the business who cares what is done with it?

There are probably tons of books on the subject of selling a business, check one out and good luck.

[D.H. Jenkins]

I was going to suggest that. But it sounds like D.H.'s mom is ready to retire and live the good life. The last thing that she needs is to have her successor default and then have to back to running the business while looking for a new buyer.


Bill hit the nail not only on the head, but he hit the nail with such force as to sink the head of the nail perfectly flush with the surrounding surface.

I have P.O.A., had it for several years now - basically because I'm pretty heartless. One of the stipulations for selling the business is a single lump sum - not only for emotional closure, but to allow her to start the kind of business she started with - a 10 seat sandwich stand on the beach (she has no intention of retiring, she just doesn't want to feed 300 people at once).

[chumpy]

Another question would be- Do you care who you sell it to?

Meaning does she want it to remain a family type buisness or would some kind of corporate sale be better.

Also, and obviously, location is a big piece of the puzzle. Buisness potential for the future etc.

good luck