How to Buy a Restaurant

How to Buy a Restaurant in Atlanta - A Business Broker’s Perspective

Starting or deciding to buy a restaurant is one of the most popular forms of business ownership, according to most business brokers.   That’s because everyone relates to food at some level.  But having a box full of grandma’s greatest recipes is not a recipe for an instant business success.  This article will address some tips, tricks, and things to consider when you decide to buy a restaurant in Atlanta from a business broker’s perspecitive.

How to Buy a Restaurant in Atlanta Tip #1:  Buy an Existing  Restaurant or Start from Scratch?
By  far, starting a restaurant from scratch is one of the hardest and riskiest endeavors a new entrepreneur can take on.  A 2005 Cornell University study indicates that close to 30% of new independent restaurants fail in their first year[1].  That can be hundreds of thousands of dollars down the drain for rookie mistakes that might include location, menu, or management.  When you buy a restaurant it is a much safer bet because you can evaluate the financial performance of the concept over several years.  Using Atlanta business brokers can assist you in finding restaurants that are currently on the market for sale so contact us to be connected to several business brokers in your area. Your business broker usually receives his compensation from the seller’s broker you so our business brokers services are usually free to you the buyer of a restaurant.

How to Buy a Restaurant in Atlanta Tip #2:  Check the Facts
When you buy a restaurant, your Atlanta business broker, CPA, and attorney can all assist you in doing your due diligence and checking all of the facts.  We know that restaurants and bars do a lot of cash business, but you should never take anyone’s “word” for what they are doing in sales and earnings.  Stick with reviewing all of the numbers you can verify and document.  The selling price of the business for sale should only be based on the numbers you can verify.  Be patient.  Your Atlanta business broker will find the right opportunity for you if the first one doesn’t work out.

How to Buy a Restaurant in Atlanta Tip #3:  Check the Price
If your new to the process to buy a restaurant, you may not be fully aware of what you should pay to buy a restaurant.  You don’t want to pay too much, but a good opportunity with a solid track record and a documented financial performance is worth paying a premium.  A restaurant owner that is not represented by a qualified Atlanta business broker with experience in the metro Atlanta market might not know either.  Don’t trust a friend or family member that says, “This is a great deal”.   It is very important to seek help and compare the price of each opportunity to other similar opportunities on the market.  A business broker in Atlanta has access to comparable materials and databases to make sure your purchase price is in line with market data.

If you think food service and hospitality are your calling, then the decision to buy a restaurant in Atlanta might lead to years of enjoyment and financial reward.  But going into the restaurant industry without proper help and investigation can lead to financial disaster.  A qualified business broker with experience in Atlanta can help you make sure your dreams come true… not your nightmares.

We hope you have a better understanding of how to buy a restaurant in Atlanta and found this article useful. Please leave us a comment.