Are there any upfront fees to list my business for sale?

Many brokers charge an upfront valuation or marketing fee when listing a business for sale. We do not charge upfront fees and are paid only when we successfully sell your business. We believe brokers should earn their fee.

What is my business worth?

In general, purchasers buy a business to make money or receive a return on their investment.  The value is recognized by a capitalization or multiple of the earnings.  We use a comprehensive approach to identify the true earning potential of the business. Our dual perspective as both owners and brokers enables us to more accurately value businesses.

My business loses money, can you sell it?

We have been very successful selling bars and restaurants that are not profitable. Our industry specific experience allows us to recognize and communicate the value of infrastructure, licensing and the lease to buyers.  Restaurants and bars have very high infrastructure costs such as grease traps, plumbing, electrical and hood not to mention licensing costs. We refer to this as “conversion value”.

What is conversion value?

We defined the term in order not to confuse the term asset sale or asset value and is used primarily businesses with heavy infrastructure such as restaurants and bars.  When a business is purchased, it is usually an asset sale as most buyers do not want the potential liability of purchasing the stock of the company. When a business is not profitable or cash flowing, a buyer may purchase the assets privately or by auction etc., but either way it is usually an asset sale. Conversion value is the purchase price of a restaurant or bar that is not profitable but it is either operating or capable of operating. It is based on the assets; FF&E, licenses in place, lease value and infrastructure. Basically, conversion value is the price a buyer recognizes for the business in order to convert to their concept.

How can we keep the listing or potential sale confidential?

We require a non-disclosure agreement (NDA) before a potential purchaser receives any confidential information including the name of the business. Most professional business brokers require an NDA but that does not guaranty the purchaser will keep the information confidential. We have many procedures in place to assure confidentiality but the most important is the relationship we develop with the purchaser.