Transferring ownership of your restaurant to relatives is a great way to keep the company you started years, perhaps decades ago, in your family. It’s also a great way to help your family members launch their own successful careers. In addition to discussing selling a restaurant via the transfer with your relatives, you’ll have to file legal documents to complete the transfer.
According to 360 Degrees of Financial Literacy, “There are many estate planning tools you can use to transfer your business. Selecting the right one will depend on whether you plan to retire from the business or keep it until you die.” If you created a business succession plan years ago, it may be easier to identify which family members will take on certain roles at your company.
Furthering the transfer process involves transferring your business interests to your children or other family members. If you decide to go this route when selling a restaurant, make sure you set up the deal so you have enough money to continue living the type of lifestyle you’re currently enjoying. You should also make sure that the deal leaves you in a good position tax wise.
If you don’t have children or family members you’re close to, you may decide that selling a restaurant to a non-relative is your best option. In this case, you may want to sell a restaurant through Transworld or another experienced business advisor. Work with experienced business advisors and you can expect to sit down and build a comprehensive business analysis.
Detailed marketing, management, organizational structure and sales records are necessary to create a comprehensive business analysis. Selling a restaurant the right way also involves studying the condition of the market, using valuation techniques to set a far price for your restaurant and using the latest technology to confidentially network the fact that you are selling a restaurant to the right prospective buyers.
To advertise the fact that you selling a restaurant, experienced business advisors will list your restaurant in various industry databases. Other places where advisors will advertise the sell include the Internet and relevant publications. Work with the right business advisors and you won’t have to worry about managing the flow of information that comes in or goes out regarding the sale of your business.
Business advisors you contract with will pre-qualify prospective buyers. To ensure information they share with prospective buyers is kept confidential, business advisors will have prospective buyers sign confidentiality agreements.
This frees you up to continue to operate your restaurant, keeping sales up which, in turn, can attract even more buyers. Another way that working with experienced business advisors can help you sell your restaurant has to do with the numbers of prospective buyers advisors generate.
For example, some business advisors generate thousands of prospective buyers for you. If you had to sort through thousands of potential buyers on your own, it could take you months just to find a handful of quality buyers. However, most of all, it’s the experience that advisors bring to the table that can help you save time and close the best deal.
About the Author: This article is written by James Johnson
