Everyone wants to get the most money for their business, but usually do not know how to ensure that this happens. There are several steps that can be taken to enable those with fast food restaurants for sale, MN being one state where there are many such restaurants, to get the highest price possible.
Owner Responsibilities
A fast food restaurant is no different than a home. When selling a home, it should be clean, organized and well presented. The realtor or an interior designer can stage the home and place furniture and fixtures around the house to improve the visual effect.
Although fast food restaurants for sale really cannot be staged, it still is important that the restaurant is clean, worn furniture is repaired, paint is applied where needed, the kitchen is steamed cleaned and the restaurant is rid of bad odors. Every dollar that is spent on such undertakings will certainly provide a greater return when a potential buyer comes for a visit.
Pricing the Business
Fast food restaurants for sale can be priced by three means.
The asset approach determines the value of a business by adding up the sum of its many parts. This is the most predictable as it is easily determined by an accountant who adds up all the assets, depreciates them, and then determines a final number.
Income approaches determine value by using a multiplier times the fast food restaurant’s annual sales or calculating the net present value or future value of the revenue generated by a restaurant in current dollars.
Market approaches determine value by comparing the fast food restaurant to be sold to other such fast food restaurants, of the same size and within the same area. This approach is the most subjective of the three.
When trying to price a fast food restaurant, each method should be used and then the price should be set with the one showing the best results with a justification prepared for the number that is chosen.
Keeping Good Books and Records
This is a must, regardless of whether one is selling a fast food restaurant or not. It is good business practice to ensure that proper sales taxes are collected and paid, business taxes are paid and employees are not paid under the table. Keeping good books and records will demonstrate to any potential buyer the goodwill and attention to detail that has been maintained during the existence of the fast food restaurant.
