Restaurant Brokers help restaurant buyers and sellers transact in the sale of a restaurant, bar, cafe, commercial kitchen, catering company, bakery, nightclub, food truck and other types of eateries. Restaurant Brokers help both business buyers and sellers. They may represent one party or both parties which is known as dual agency.
In California, Restaurant Brokers must be licensed by the State Department of Real Estate because most restaurant business sales involve either the transfer of a lease or the sale of commercial property. Restaurant Brokers are usually members of professional business broker associations such as the International Business Brokers Association (IBBA), nationally, and California Association of Business Brokers (CABB) statewide.
How Do Restaurant Brokers Sell Eateries?
In most instances, upon signing a listing contract with a seller wishing to sell their restaurant, Restaurant Brokers will set about to find a suitable buyer for the sellers’ business. To accomplish this goal, restaurant brokers generally perform the following:
- Ensure confidentiality—Restaurant brokers have established systems in place to protect the confidentiality of the business opportunity.
- Valuations—Most restaurant owners have no idea what their eatery is worth. Business valuations are complicated but experienced restaurant brokers have formal training and experience in business valuations to establish the Most Probable Selling Price (MPSP) at a realistic market value.
- Market knowledge—Brokers understand their local market, the desirability and worth of various eating establishments.
- Marketing the business for sale— The Broker will most often list the eatery on at least one of the major businesses-for-sale websites, in addition to any other methods such as marketing to their list of restaurant buyers, network with their professional associations, list the business on their website, use social media to promote the sale, etc.
- Comprehensive Business Review– Preparing comprehensive business information regarding business performance, lease information, licenses, business disclosures and financial statements.
- Confidentiality –Maintaining the privacy and confidentiality of the business by prescreening buyers to assure that they are qualified and financially capable of buying the business.
- Deal-Making–Facilitate negotiations between the parties and prepare purchase contracts that reflect the parties’ agreement. Negotiate facility lease assignment or negotiating a new lease and negotiating with creditors.
- Financing — Securing financing either by Small Business Administration (SBA) lenders, commercial banks or seller financing.
- Escrow—Opening escrow services, obtaining buyer’s earnest money deposit and subsequent deposits. Managing the escrow process and business transfer upon the close of escrow.
- Business Transfer–Provide post-sale support to assure a smooth transition with minimal business interruption.
Mission Peak Brokers sell businesses throughout the Bay Area. While we have experience selling a variety of Bay Area businesses, we specialize in Gas Stations, Liquor Stores or Convenience Stores and Restaurant/Bars. We sell businesses with commercial real estate as well.
As one of the Bay Area’s most successful Restaurant Brokers, Mission Peak Brokers attract more qualified buyers to your business than other brokerages. We have several hundred pre-qualified buyers looking for a restaurants, bars and nightclubs to buy. We reach thousands more through our website, top business-for-sale websites, commercial real estate listing sites, social media and our professional associations. We carefully pre-qualify our buyers including requiring confidentiality agreements before obtaining information on the business.
Mission Peak Brokers is also unique as a Bay Area business brokerage. We are one of the only brokerages in the area that provides business, commercial real estate and loan brokering (commercial real estate loans and SBA loans) for a comprehensive level of service to our clients. Our closing ratio for loans is 99% which helps us effectively guide transactions to successful outcomes.
Given our extensive experience and success rate (over $270,000,000 sold), we welcome the opportunity to use our expertise to help you achieve your entrepreneurial goals. Check out our ratings. Contact us today to help build your dreams tomorrow.