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Answers to
Broker
Questions
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Where do I go to list my restaurant
for sale?
Register in the "Brokers
Center" to
choose your listing option.
Details
on each of the options is
available in the respective
sections.
Return
to Questions
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How
much does it cost?
Broker accounts have pricing which is
dependent on the number of listings you
maintain. All accounts have a one time setup
fee of $50. Additionally when you sign up
you will be charged for your first month in
accordance to the level you sign up for. You
will be billed automatically monthly until
you cancel your account.
Click here to view
pricing on all
broker account level
options
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How can I list multiple listings
and is there a savings?
Broker accounts allow you to
list multiple listings and there
is savings over a normal seller
account if you plan on listing
for an extended period of time. If you
are interested in a broker membership
account please sign up in the
"Brokers
Center."
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to Questions
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How
do I get listed on the homepage?
Broker accounts can upgrade
individual listings to Spotlight
listings are available for only
$125/month. This is a significant
savings over the $199.95/month
available to individual sellers.
Additionally brokers can upgrade
individual listings to Featured
Listings to get priority
placement and an extra heading
line in the search results for
only $10/month, a 50% discount
over individual seller accounts.
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to Questions
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How
do I pay for my listing?
All payments are made online
using secure online credit card
processing with payment services
by Verisign PayFlow Pro.
Return
to Questions
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I would like to sell but how do
I value the business and put an
Two valuation
models used in the industry are the gross
sale and cash flow multiple models. Based on
a sample of over 3000 listings taken from
our website we have pretty good evidence
that these multiples are widely used. Keep
in mind that these are just rules of thumb
and vary widely depending on the variables
of the restaurant and the state of the
economy.
Gross
sale multiple: 30%-60% of yearly
gross sales. Keep in mind that listed
price does not generally reflect actual
selling price. Business brokers will
usually suggest a multiple closer to
30%-40% if using this valuation method
depending on the businesses
marketability and current state of the
economy.
Example:
Assumption 1: $300,000
yearly gross sales
Assumption 2:
30% gross
sale multiple
$300,000 x
30% = $90,000
Asking Price
Cash flow multiple: The
cash flow multiple is utilized generally
when a business has substantial
profitability. The cash flow multiple
ranges from 150% to 350% of the yearly
cash flow. Having good cash flow is
important but there are other
considerations (i.e. the lease! if you
are raking it in but your lease is up in
a year with no renewal then you don't
have much to sell. If you have a long
lease at a good rate then you add more
value typically)
Example:
Assumption 1: $100,000
yearly cash flow
Assumption 2: 250% cash
flow multiple
$100,000 x 250% = $250,000
asking price
Listing Survey from
Restaurants For Sale Online -
Conducted
6/1/05
*Surveys rounded to nearest
$1,000
LISTING PRICE:
Median Listing Price: $215,000
Average Listing Price: $391,000
The numbers above
should not be taken
as to this is what
you should sell for.
Averages and medians
are just statistics
and don't reflect
where your price
will fall
necessarily.
GROSS SALES:
(Based on
472 Samples)
Median Gross Yearly Sales:
$420,000
Average Gross Yearly Sales:
$638,000
Median Gross Sales Multiple:
50.4%
Average Gross Sales Multiple:
59.2%
Although the
media and average
multiples seem to be
at the top of the
range, remember that
sellers always start
optimistic and
usually have to
negotiate.
CASH FLOW: (Based on 289
Samples)
Median Cash Flow Yearly: $88,000
Average Cash Flow Yearly Sales:
$129,000
Median Cash Flow Multiple:
277.8%
Average Cash Flow Multiple:
302.0%
Return
to Questions
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Can I list a new restaurant opportunity?
Yes. You can list any restaurant
opportunity as long as the content
is hospitality related. Our site
offers restaurant space for lease,
restaurant buildings for sale,
restaurant businesses for sale, bars
for sale, nightclubs for sale,
restaurant land for sale, restaurant
equipment for sale. In addition to
restaurants we list list bars,
nightclubs, delis, catering
companies, ice cream shops, juice
bars, convenience stores, franchise
opportunities, and various other
food service related ventures.
Return
to Questions
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What is the best way to sell my
business?
Selling
a restaurant isn't easy and
although our service has been
very
successful for many of our users,
you may want to try a
number of approaches to making
a sale. We
strongly recommend that in addition
to online marketing, that you
do
local marketing in your area.
Posting classifieds in the newspaper
and doing direct mailings to
restaurateurs in your area
will help
create interest in your business.
We also suggest for high profile
listings that you purchase
a
Spotlight listing on our homepage.
If you have been trying to
sell your
listing and have not had success
you may want to consider consulting
with
a broker that specializes in food
service businesses.
Return
to Questions
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Our sale is confidential. How can
I protect my restaurant's identity?
When filling out the listing
form, you can reveal as much
or as little
information about your restaurant
as you wish. Some of the ways
to
keep your restaurant's identity
confidential would be to list
with
a generic name (i.e. Rather than
using the restaurant's name use
a catchy title like "Fine Dining
Restaurant"). You can also
use a generic address. (ie. Rather
than the actual address use "South
of Market, San Francisco")
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to Questions
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Disclaimer:
The
information in our database
has been provided by the
seller or broker stated on
each respective listing.
Restaurants For Sale Online,
LLC receives no commission
on the sale of any business
and has not independently
verified any listing
information and assumes no
responsibility for the
source, accuracy, or
completeness. The results of
our various studies reflect
data in our database.
Restaurants For Sale Online
assumes no responsibility
for pricing or
recommendation of pricing to
any of our users. If you are
interested in buying a
business, Restaurants For
Sale Online, LLC recommends
you do your own due
diligence to verify the
source of any information
provided to you by a seller
and/or intermediary. If you
are interested in selling your business, Restaurants For Sale Online
recommends you contact an intermediary that specializes in
transactions similar to the respective business.
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