You’re selling your hospitality business and have a few buyers lined up. It’s time to vet those offers and get the best return on your investment, right? While this is the best scenario, make sure your buyers are comfortable with what you’re offering and have no reservations. This helps the transaction move smoothly, gets contracts signed quickly, and alleviates any fears.
Why would buyers have fears?
In any business transaction, buyers have worries. A hospitality business is very consumer-facing, which can add more apprehension when these fears are not addressed. Common questions include:
Why is the business being sold?
What are the timelines for transition?
What are the processes for the change, and who will be involved?
Will there be involvement after the sale is completed?
These are normal concerns, and have to be addressed authentically, knowledgeably, and with professionalism. As a seller, fully communicating what the buyer needs to know makes the difference between having an effortless sale, and one that has the potential to fall through.
Having a viable action plan
The key to any successful hospitality business sale is having a good action plan in place. This demonstrates to the buyer that you are in a good place and the business is thriving. Your action plan should include the following:
Anticipation of the buyers’ needs, concerns and wishes – This means a lot to the buyer. Anxious buyers need certain information to help make them feel comfortable. Drafting a short sale sheet outlining the history of the company and its success. This information sheet should also include the type of equipment being sold, and its condition.
Transparency – When selling your hospitality business, arranging face-to-face appointments to answer any questions and walk-throughs is key.
Records – Once the process has started, you want to be proactive in providing proof of licensure, all
warranties on equipment, number of employees, and other information to help them along the way.
Communication with internal team – Communicating with the internal team helps put them at ease and alleviates any surprises. Be open, honest and forthright about any pending changes. Being proactive in making sure everyone is on the same page goes a very long way, and demonstrates you have the best intentions.
Timelines – Timelines are crucial. You want to note potential timelines for the sale, timelines for handing over the business, and if there are any changes, the impacted timelines for those changes.
Processes – Once the sale is completed, having processes in place for the transition, and the person who will assist.
The team handling the transaction also makes a difference. Using a broker that specializes in hospitality businesses for sale provides expertise, experience, and value. When selling your business, having a team that has an innate understanding of how to position your business for the best results is key. They will be able to assess the strengths and weaknesses of your hospitality business, providing insight that makes it attractive to prospective buyers. A specialized broker will be able to manage your paperwork, help resolve issues, close the deal, keep it confidential and guide the transition for each party.