6 Steps to get your Hospitality Business ready for sale…
- Have your latest financials ready. At least 2 years profit and loss. This means ensuring you understand your own profit and loss, and any expenses incurred that would be classed as an addback (an expense a new owner wouldn’t need to pay). This is the easiest way to show buyers the potential for future earnings.
- Leased equipment– Silver Chef. Have an updated balance available to show the payout figure. Be prepared for buyers to want these items paid outright upon settlement.
- Staff entitlements- How many full time staff do you have and how much entitlements are they owed? These balances will be required to be paid to full time employees before settlement takes place. This ensures that new owners are not inheriting any future debts collected by past owners.
- Lease– How many years do you have on your current lease? If less than 2 it is suggested to request an additional option period from your landlord before going to market. A longer lease ensures a higher sale price to return on investment.
- Social Media-We live in a digital age where buyers are scrolling constantly online for information. Is it easy to find your business? Do you have a social media presence? If the answer is no….. we suggest you have at it.
- Council food safety inspection. If you have had a recent council inspections it is beneficial to have this information available. Most buyers will request a pre sale inspection during due diligence, so ensure your ducks are in a row.
If you would like to book a free phone consult with one of our hospitality specialists feel free to book on the link below
