It is not hard to find entrepreneurs seeking to purchase an existing restaurant in Florida. While the state offers an excellent place to own a profitable restaurant, this specific segment has its share of risk involved.
In this article, you will find a checklist for entrepreneurs buying a Florida restaurant.
Buying a Florida Restaurant Checklist – What Prospective Buyers Must Double-Check
Does the Business Offer Fit the Buyer’s Business Skills and Long-Term Plans?
Statistics show that most restaurants fail within three years of starting up, showing that it is impossible to run a successful business without the necessary skills.
Additionally, operating a restaurant requires long hours of dedication, which is something hard to achieve if the owner does not perceive it as a long-term investment.
Fortunately, prospective buyers have an extensive list of options when looking for an ideal restaurant to purchase in Florida. The variety of subcategories (e.g., cuisine, customer base, etc.) and pricing range are immense.
Considering the options are far from scarce, the first move before starting the negotiation to buy a restaurant is to proceed with a careful market review and identify the likely future of the restaurant.
A good strategy is to work with an expert business purchase attorney to investigate the restaurant’s background.
Why Did the Current Owner Decide to Sell the Restaurant?
After completing the initial investigation, it is possible to talk with the current owner and start negotiating a potential transaction. The negotiation phase is vital for both parties, as it will determine whether the business will materialize as expected by them.
At this phase, the most important rule for buyers is identifying the reason behind the sale of the restaurant.
When talking to the current owner, a buyer may ask the question directly. An unconvincing or feeble answer to this question can indicate the seller’s unwillingness to reveal something. No matter how attractive the restaurant offer might look at first glance, it is not safe to skip this part of the process.
Proceeding with Due Diligence
Before buying a restaurant, prospective buyers must proceed with careful due diligence to review the company’s history, financial records, and operational background. This process requires a professional level of expertise and must be completed before the buyer makes the offer.
This in-depth research consists mostly of extensive paperwork review and financial analysis, but communication with employees, customers, suppliers, and other parties involved may also be part of the process. When reviewing the records, a buyer must consult with an expert attorney to identify:
- What is the financial situation of the restaurant?
- How much capital does the buyer need to cover current liabilities?
- What is the company’s situation in terms of accounts receivables and liquidity?
- What is the value of the assets included in the business sale?
- What are the key non-tangible assets (e.g., intellectual property) of the business? Are they part of the sale?
Are You Interested in Buying a Restaurant in Florida? – Immediately Seek Expert Legal Guidance
Buying an existing restaurant has its share of financial and legal risks. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] to find the best business purchase strategy for your case.