I’ve been selling businesses for more than 20 years, and I’ve seen just about everything.
When it comes to selling a restaurant in Florida, some mistakes show up again and again.
Here are seven I’d like you to avoid.
Mistake #1: Waiting Until You’re Burned Out
“Michael, I’m done. I want out.”
That’s not an exit strategy.
If you wait until you’re completely burned out, you may not have the time or energy to prepare the business properly.
The best exit planning can begin three or more years before the sale.
Mistake #2: Pricing It Based on Revenue
A restaurant doing $1 million in sales isn’t automatically worth more than a restaurant doing $750,000.
What matters is profitability and the cash flow available to a buyer.
SDE is commonly used for smaller owner-operated restaurants, while EBITDA becomes more relevant for larger operations.
Mistake #3: Having Messy Books
Buyers don’t want to hear:
“Trust me, I make another $100,000 that doesn’t show on the books.”
That’s not how a transaction works.
Buyers and lenders want documentation.
Mistake #4: Being the Business
If customers come because of you, employees stay because of you and vendors deal with you, you’re going to have a harder time transferring the business.
Start building systems.
Mistake #5: Ignoring the Lease
A buyer needs confidence that they can continue operating the restaurant.
A short lease can become a serious problem.
Mistake #6: Advertising the Sale Too Soon
Sometimes confidentiality is extremely important.
Employees find out.
Competitors find out.
Customers find out.
Suppliers find out.
The valuation guide specifically identifies confidential listings as useful when announcing a sale could negatively affect operations.
Mistake #7: Choosing a Broker Who Doesn’t Understand Restaurants
Selling a restaurant isn’t the same as selling a house.
There are leases, equipment, inventory, food costs, labor, POS systems, delivery platforms, recipes, employees, licenses and dozens of other moving parts.
You want someone who understands how buyers evaluate restaurants.
That’s what I do.
If you’re considering selling a restaurant in Florida, I’d be happy to have a confidential conversation with you.
You can learn more about me at Your Florida Business Broker.
Don’t wait until you’re ready to sell to start preparing to sell.
Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 476 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential. He is also a Florida Licensed Real Estate Broker and Business Brokers of Florida Board Certified Intermediary . Shea is a member of the VRMA and a recognized expert in property management and vacation rental management business sales