The bar business is risky business. There are many bars for sale on the market with many different options. How will you differentiate your sale from the rest and catch the eye of a potential buyer. In order to sell your bar and get the most out of your sale consider the following: timing, organization, cleaning, pricing and working with a business broker.
1. Timing is everything –
The best time to sell your business is before experiencing a growth peak. It may be hard to let go when business is good. But you want to be able to show future growth potential to buyers.
2. Get Organized –
Potential buyers will want to the business’s financials. You will need to include tax returns, P&Ls, bank statements and balance sheets for the last three to five years.
Besides getting organized you also want to be prepared. Bars are a cash business. It can be difficult to track the cash dealings of the business on paper. A buyer or business broker may use alternate methods to establish value. Being prepared with the appropriate documents will help back up your asking price.
3. Clean Up –
Appearances are everything. You want your bar to be not only presentable but attractive to potential buyers. Clean the bar, de-clutter, put on a new coat of paint, and upgrade any outdated decor. A turnkey operation is more appealing to potential buyer then them having to invest money making upgrades once taking over.
4. Price it Right and Structure a Good Deal –
Establishing a price for your business is not as easy as it sounds. Pricing too high can leave your business for sale on the market for months. Pricing your business too low will cause you to lose money. I recommend consulting your professional team for help in determining a price. Your accountant can help to structure the deal to be advantageous regarding taxes to both you and potential buyers. Some deals are even offering financing for 3-7 years. The way your deal is structured can help to differentiate your business from other bars for sale.
5. Work with a Business Broker –
The bar business is a demanding business. You have invested much time and effort. Following these five simple steps can assist you in getting the most out of your investment.