Our Process
Are You a Seller?
Texas Restaurant Advisors will guide owners who have their spent time, talent and money on their business through the sale process. The most common reasons owners choose to sell are retirement, health issues, career change or the business is just not working anymore. From the first days of marketing to closing can take anywhere from 9 - 12 months, however every transaction is different. Here are a few things to expect:
The deal flow typically goes as follows:
The broker reviews and recasts the financial statements to develop a price opinion based on market multiples and comparable businesses that are for sale or have sold.
The client and the broker agree to execute a 6-month service agreement that has a 6-month roll over period.
The broker creates a marketing profile and business summary for review then approval.
The broker markets the business on on-line platforms along with direct e-mail and newsletter marketing.
When a prospective buyer makes an inquiry about your business, they automatically receive a non-disclosure agreement (NDA) and in some cases a buyer disclosure which screens them for proof of funds and relevant experience.
Once the NDA is completed, the prospect will be given access to the information such as profit and loss statements, balance sheet, asset list, photos and lease summary.
If there is further interest, we share more detailed information and set up a confidential tour.
The buyer provides a letter of intent (LOI) which lines out the proposed deal terms and is legally non-binding. These terms include the proposed closing date, sale price, deposits, financing, length of due diligence and other conditions to close the deal.
If the terms are accepted, the parties start the process of the asset purchase agreement (APA) which is definitive and legally binding. Documents will or may include the list of assets, bill of sale, the allocation of purchase price, transition/training period, intellectual property agreement and escrow agreement.
Then the best part, we close the sale, transfer the keys and the transition begins!
Are You a Buyer?
Texas Restaurant Advisors also works with buyers. Our team can help you find an profitable restaurant for sale, a 2nd generation location, an asset sale or a newly built space for a full finish out. Normally, purchasing an existing restaurant or one that is not operating is more cost effective. Before purchasing a restaurant, here are a few questions that may help you in your decision.
Is this restaurant right for me? Why am I buying?
How will I pay for it? Will I need SBA or other financing?
Why is the seller selling?
Who are the competitors and does this business have an advantage?
What are the demographics of the customers?
How many employees do they have and how long have they been employed and who are the key personnel?
Is the property leased or owned? If leased, what are the terms and can the lease be assigned?
What licenses and permits will I need to operate and what are the costs of them?
If a franchise, what is the name and what are the terms of a transfer including fees?
Are gross sales increasing or decreasing? Is the business profitable?
