Should I sell my bakery as a going concern or sell the equipment?

An owner who wants out of a bakery has two broad routes. One is to sell the whole running business. The other is to close the doors and sell the ovens, mixers, display cases and other equipment separately. Our guide to selling a retail bakery covers the first route. This answer helps you think through which route fits your situation.

What a going-concern sale needs

A buyer of a running bakery is buying customers, staff, recipes, supplier relationships and the right to the premises. That means clean records, a lease the landlord will assign or renew, and a team that will stay. Ask how long it would take to arrange, since the bakery must keep operating while it is listed. Ask your accountant and lawyer what the sale would involve.

What an equipment sale needs

Selling equipment piece by piece means making a list, checking what is owned outright and what is leased or financed, and finding buyers for each item. Lenders may hold a claim on some of it. Ask your lawyer what must be cleared before anything leaves the building. Staff may lose their jobs and the lease may still need to be dealt with; ask a lawyer or employment adviser what applies, so involve your landlord and your advisers before you decide.

Keeping both options open

Keep a current equipment list with ages, condition and ownership, whichever route you choose. Keep the bakery trading and the records tidy while you look for a buyer. Tell prospective buyers honestly that you are weighing options only if your advisers agree. A buyer for the whole business may still want some of the equipment on its own terms.

• A list of equipment with ownership and any financing
• The lease and any landlord correspondence
• Staff arrangements and what each person does
• Recent financial statements and supplier accounts