Here is what I think about that. Yes and yes, with qualifications.
If you are a buyer, there are opportunities available the likes of which you may never see again. Real estate prices and lease rates are down and more business are available that are classified as distress sales/turnarounds/golden opportunities. In this economic environment, if you are an experienced operator, you have a big leg up on the first time restaurant or bar owner because you will have a shorter learning curve with a new business than a novice would have. You know what you are doing. If you have abundant cash, play your cash right and you could be a very big winner.
If you are a seller and you are putting a successful business on the market, patience will be a virtue. The average sale time for a "good" restaurant or bar may be twice as long as it was a few years ago as the biggest segment of buyers are those looking for the super, low priced deals and golden opportunities. And, you may very well have to offer owner financing to get your deal done.
If you are in the stressed, distressed, must sell category, you really have no choice but to put your business on the market now. Diminished sales and no cash flow remove all of the potential "goodwill" from your sale creating a price that may reflect only the "in place" value of your assets. Most likely you will be forced to sell at a price below that which you would want and the odds are very high that you will have to provide seller financing. The best way to sell quickly is to acknowledge the low price game that is going on and be a willing player. There is a price your business will sell at but most likely it is not the one that you would wish to have.
With all that said, I am going to tell you that I think this is a good time to put a restaurant or bar on the market. If your business is doing great, keep it going great to support your price. If your business is not doing great, you probably have no choice so you had better get the process started before things get worse.
I always think it is a good time to buy or sell, if you are a savvy buyer or seller with your eyes open to the realities of the market place. That is why I always suggest that restaurants and bars get bought or sold using the services of a competent restaurant and bar broker, who will look you in the eye and tell you the truth, because the truth of the marketplace is what such a specialist deals with every day, while getting the job done.
My name is Brian Harron. I specialize in the sale of Arizona restaurants, bars and liquor licenses. I can be reached at Sunbelt Business Brokers, Prescott, AZ, 928-541-0890. You can see most of the restaurants and bars that I have for sale by going to arizonabizsales.com
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