A diner is one of the favorites places to have a snack, not only in the United States but in the whole world. There’s a diner business almost in every corner, and people from all ages can be considered a target public.
It is for sure a very profitable and popular business model, and this fact can be the most persuasive argument for selling it.
In fact, a diner business is not easy to run, but as it can be a very profitable one, franchises are very common, especially in the United States.
However, if you are thinking of selling your diner business, you better be aware of what your business is worth. In the next few topics, you will learn how to do that.
What is your Diner Business business worth?
In order to know exactly what your business is worth, you have to gather all finance information from the past three to five years and compile it into a major report, on which you have also to include information about other diners in your surroundings.
Potential buyers is interested in those numbers, as competition can harm your business with different public appeal.
- What are the sales?
- What is the profit?
- What are the growth trends?
- What is driving new sales and is that sustainable?
- What channels do new customers come from and what is the breakdown of each channel?
- What is your market position?
- Is your Location favorable?
- How reliant is the business on the owner?
- What systems and processes are in place to run the business?
What makes a Diner Business worth more?
What are the differentials that attract more clients to your business? Does your diner business offer a drive-thru option and a modern environment? What is the food quality? Make sure you answer the following metrics before setting your asking price. There are some important aspects that makes your business worth even more.
- Predictable key drivers of new sales
- Stable or growing traffic from diversified sources
- Established suppliers of inventory with backup suppliers in place
- Traffic stats
- High percentage of repeat visitors and repeat sales
- Clean legal history
- Brand with trademark, copyright or legal concerns
- Documented systems and processes
- Growth potential
What does the average Diner Business sell for?
Since 2005, there has been 118 diner business sales in the United States, with an average sales price at $240k and average multiple of 2.08.
It means that most of diners sold were smaller businesses, as profit from its sale was two times bigger than total gross income.
What is the most frequent deal size?
Most frequent deal size is $100k, which exemplifies what we said in the last topic. Most of diner business sales were from smaller businesses and most frequent deal size is almost half from average.
Is the Diner Business market getting bigger?
2015 was not a good year for diner business market. 2014, on the other hand, was much better, with a total transaction value almost four times higher than last year’s.
It’s not possible to ensure that diner business market is getting bigger, but we can guarantee that, even though it’s not living the best moment possible, it’s still a very good time for a diner sale.
Are bigger businesses worth more?
Not always. Depending on the number of sales, smaller businesses can be more profitable than higher ones. At least that what happened in 2013, for example, when diner business sold for less than $250k had a higher multiple rate than businesses sold for more than $250k and less than $500k.
What states have the most Diner Business deals?
Are you wondering where the most deals were made throughout the country, or if your state has a hot market to sell fast? As you can see if you are located in New York or Florida, you may get a lot more offers than if you are in Oklahoma or Minnesota. But sometimes you can overcome the low number of deals with investors or competitors looking to enter a specific new area, and get lucky with an offer.
Why would you sell in the first place?
The reason to sell always varies from each person. Maybe you are looking for new challenges, businesses and opportunities, or you just want to enjoy your family and retire. Although it can seem tempting to get your hard worked cash, make sure that you are clear on the motives so you don’t regret afterwards.
How long will it take to sell your business?
If you have read all the necessary steps to understand your valuation, and think you have focused on all the topics that make your company worth more, it is maybe time to start the process. Selling your business is a long-term process, and doesn’t happen overnight. Usually companies sell in 12 months, but you can also see deals getting closed in 6 to 9 months depending on the opportunity.
What is the process of selling your business?
This step by step process will help you get less confused when you make sure you are ready and confident to let go of your business, and perform a nice and positive sell. Many entrepreneurs forget about a step, or just don’t have the right guidance to know all the stages necessary and get lost through the process. Don’t forget to go through all of these, and if you have any questions, comment at the end of the article or contact us for more help.
Who will buy your business?
If you are wondering about the buyers that can be interested in your Diner Business, don’t worry, there are many options and possibilities. From First Time entrepreneurs, to businessmen interested in new opportunities, the chances are that in the diner business industry it may likely be a person who already had a store in the field.
Diner business market is not living its best moment, but it’s quite possible to say that a diner business owner who is looking forward to sell his business can find a good offer.
Average sales price is up to $240k, but most frequent deal size is only $100k. If you want to start accelerating your buyout process, fill out our free valuation form and get your business valued today! Leave your comments on any doubts or feedback, we are glad to hear your thoughts!