Confidentiality can be extremely important in marketing a business for sale as it can be a very sensitive time to keep a business running smoothly prior to a transition. Restaurants For Sale Online gives owners and broker the ability to include as much or as little information about the opportunity as they wish.
In dealing with a confidential sale we recommend brokers and owners to screen the buyer before releasing information such as the business name, address and financial information.
Screening the Buyer – In screening a prospective buyer I ask the following questions:
- Are they in the restaurant business? If so what is their scope of experience – have they owned, managed and/or worked in a restaurant and for how long? What kind of restaurant have they been involved with, i.e. dinner house, cafe, coffee shop, ethnic or fast food restaurant? What size of restaurant have they been involved with, i.e. square footage and number of seats?
- What kind of restaurant are they looking for?
- Do they want to buy an ongoing successful operating restaurant or are they just looking for a fully equipped restaurant with a good location?
- Who are the decision makers?
- What is their time frame?
- What is their source of cash – their own savings, family loans, bank loans, etc.?
- When will the cash be available and where is the cash?
- How is their credit and what is their financial situation? (All landlords are going to require the buyers current credit history, personal financial situation and most recent tax returns as well as their resume and business plan).
Confidentiality Statement – Have the prospective buyer sign a confidentiality statement. Once the prospective buyer answers the above questions appropriately and you or the broker is convinced that he/she is a sincere buyer you should have him/her sign a confidentiality statement which says the buyer will keep the information (name, address, financial information, etc.) delivered to him/her confidential. Additionally the buyer should be instructed to act as a regular customer when he/she goes into the restaurant and not snoop around.