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Add Backs When Selling a Business: How to Make Your Financials Shine

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Clean, transparent financials are one of the biggest single drivers of a successful business sale. We know that sounds boring to say, but it’s true. Business buyers will spend more time looking into a seller’s financials than most sellers would ever believe. Just when a seller thinks they have shown everything, someone comes up with some other items to request. Most of that back and forth comes down to one thing: add backs. Which expenses on your profit and loss statement are really business expenses, and which ones are personal or one-time costs that a new owner would never pay? Getting that answer right is what separates a smooth closing from a deal that dies in due diligence. We wanted to offer some tips on how to make your business financials look their best when selling a business. To start from the beginning, when a buyer or their lender evaluates your company, they are not just looking at revenue and profit. They are trying to answer a simple ques...
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How to Sell a Restaurant: Advice for Preparing Your Restaurant Business for Sale

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If you’re thinking about selling your restaurant, potential buyers are already thinking about four things: location, concept, operations, and financials. These four elements determine the extent of the opportunity when buying your restaurant, and they shape how a buyer, their lender, and their accountant will evaluate your business from day one. Selling a restaurant in Florida involves more moving pieces than most sellers expect. Beyond the four core elements, buyers also weigh your restaurant’s physical appearance, your asking price, and the organization of your paperwork once due diligence begins. Preparing each of these areas before you go to market can be the difference between a smooth sale at a strong price and a stressful selling process with weak offers or no deal at all. What Restaurant Buyers Look For Before They Make an Offer 1. Location: More Than Just an Address Buyers know they can change...
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When Is the Right Time to Sell a Business? Advice from a Business Broker

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Sometimes business owners have no choice but to sell. Health, retirement, and relocation are common reasons a sale becomes necessary rather than optional. In those cases, the question isn’t whether to sell but how to get the most value from the sale process. For other business owners, the decision isn’t so clear-cut. Maybe it creeps up on you, and you start wondering what your business is actually worth. Maybe you’re ready to try something new, but aren’t sure how to make the transition. Or maybe retirement is finally on the horizon. Even when the motivation is there, deciding when it’s time to sell your business can still be difficult. This raises the question every seller eventually asks: how do you know when it’s the right time to sell? Three Conditions That Signal the Right Time to Sell Over the years, we’ve found that three conditions, when aligned, point to th...
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