How do I sell a restaurant equipment and supply business?

Selling a dealer is not the same as selling a restaurant’s used kitchen. You are selling a going business: its stock, its supplier agreements, its customers and its people. A buyer will test each one, so the best preparation is to do the testing yourself first. These steps usually come before any listing or first conversation.

Count and age the inventory

Do a full physical count and match it to your records. Then sort the stock by age and condition, separating current models from dated items, floor samples and equipment taken in trade. Decide with your accountant how slow items will be shown. A buyer who finds clean, honest stock records starts with more confidence in everything else you say.

Speak to manufacturers first

Dealer agreements often matter more than any single product. Read each one for what it says about a change of ownership, and speak with the manufacturer’s representative before you go to market. Ask what it would want to see from a buyer. Your lawyer can tell you what the agreement requires.

Document accounts and projects

List your trade accounts, restaurant openings and other projects in progress, with what has been quoted, ordered and delivered. Note repeat customers and the work they bring. Show how installs and service calls were scheduled. Buyers want to see that sales come from a process, not only from the owner’s address book.

Separate yourself from key relationships

If a few contractors or chains buy because they know you, introduce your sales staff and a second contact on each account well before the sale. Write down pricing arrangements and special terms. Agree with your buyer how long you will stay to help, and what you will do during that time.