Restaurant Brokerage: Sell, Buy & Value Restaurants

Most independent restaurants are valued as a multiple of seller’s discretionary earnings (SDE), adjusted for lease terms, sales trends, location, and the condition of equipment. Restaurants that are not profitable are often valued on their assets and the value of the space to a new concept. A confidential valuation will give you a realistic range.

Many restaurant sales close within three to nine months. Landlord lease approval, liquor license transfer, and franchisor approval are the usual timing factors, so we start on those early in the process.

We market restaurants blind, without the name or address, and only share details with qualified buyers who sign a non-disclosure agreement. Showings are scheduled outside of service hours, and buyers are instructed not to approach staff or management.

In most sales the buyer takes an assignment of your existing lease or signs a new lease with the landlord. Landlord approval is usually required, so we review your lease early and help manage the landlord conversation.

Yes. Franchise resales require the franchisor to approve the buyer, and may involve a transfer fee, training requirements, and remodel obligations. We qualify buyers against the franchisor’s criteria so approval does not derail the deal.

Restaurant brokers are typically paid a success-based commission at closing from the sale proceeds. We explain our fees transparently before any engagement begins.

Buyers and lenders will ask for three years of tax returns and profit and loss statements, year-to-date financials, sales tax reports, POS sales data, the lease, and an equipment list. Clean, consistent records support a higher price and a faster sale.

Common options include SBA 7(a) loans, conventional bank loans, personal capital, and seller financing. Restaurants with verifiable cash flow and a solid lease attract more financing options, and more buyers.