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How To Maintain Strict
Confidentiality In Marketing
Your Restaurant For Sale
by
Steven D. Zimmerman,
Restaurant Realty Company
July
1999
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:
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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?
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Who are the decision makers?
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What is their time frame?
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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?
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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.
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