The State of Mid-Market Mergers and Acquisitions: Q4 2016

Administrator October 19, 2016October 13, 2016 Buyers Seeking Restaurants Bars Food Service, General, Preparing your Restaurant for Sale

The State of Mid-Market Mergers and Acquisitions: Q4 2016

By Meghan Daniels, Axial | October 13, 2016

After a record-breaking 2015, M&A activity is on the decline.

Worldwide M&A activity for the first nine months of 2016 is down 22% from the same period in 2015, deal-making activity is down 32%, and PE-backed deals are down more than 27%, according to data released by Thomson Reuters.

We checked in with three deal professionals to see how these trends are being felt in the middle market, and get their predictions for the months to come.

Eric Mattson is Principal at Excellere Partners, a private equity firm based in Denver, CO. Mike Richmond is Managing Director at The DAK Group, an investment bank based in New York, NJ, and PA. Arun Prakash is Managing Director at Carbon Arrow Advisors, a consulting firm based in Austin, TX.

What trends have you noticed over the past year?

“As to be expected in an election year, there’s some of the normal wait-and-see chatter, but there really has not been a discernible new trend that’s developed in the markets we track. Deal flow remains as strong as ever and the quality of the businesses we see are outstanding. Anecdotally, we are hearing from investment bankers and service providers (lawyers, accountants, etc.) that an unusually high number of transactions are failing to close. This is likely a dynamic resulting from some combination of premium pricing (perhaps we’ve hit the peak), uncertainty around the election, under-prepared businesses coming to market, and/or tighter credit markets.”
-Eric Mattson, Excellere Partners

“The deal activity we have seen has been strong all year. We expect this positive activity cycle to continue into 2017. Today, in the middle market, prospective buyers are looking for companies with very specific factors, and are willing to pay for them. Some of these factors include: that they have defensible market positions, stable historical growth, a solid plan for future growth, and that they provide added value to the existing company.”
-Mike Richmond, The DAK Group

What do you foresee for deal activity and volume in Q4?

“Post-election, we expect to see deal activity pick-up. The wildcard here for private equity is what happens in the debt markets.”
-Eric Mattson, Excellere Partners

“We see 2017 as a very strong year with transaction multiples at or near record highs. Financing will still be readily available, though borrowers may have to work harder to obtain higher leverage and the best terms. Mergers and Acquisitions volume and valuation trends are cyclical and there is no way to predict how long the favorable environment will last. Business owners considering a future exit strategy may want to begin preparing now if they hope to take advantage of the current climate.”
-Mike Richmond, The DAK Group

Is there a particular industry in which you foresee a decline in activity? Why?

“Given the concerns over a possible correction, discretionary markets and large capital goods markets could see some deal pressure in the coming quarters.”
-Eric Mattson, Excellere Partners

Is there a particular industry in which you foresee increased activity? Why?

“Business services. The uneasiness in the economy will affect these companies the most as they tend to be less sticky, so their owners may want to sell.”
-Arun Prakash, Carbon Arrow Advisors

“We are seeing a lot of activity in niche manufacturing, value added distribution and the industrial markets, particularly in the Northeast. In addition, there has been an uptick in all healthcare-related businesses.”
-Mike Richmond, The DAK Group

“There are number of ‘prognosticators’ who are predicting an economic correction in 2017-18; therefore, the safe bets are in non-cyclicals and those sub-sectors that perform well in tighter markets. In addition, given the unfortunate reality of terrorism here in the US, we see the security and safety market as having a strong tailwind. Since the recovery has not really created a bubble scenario, we’re not overly concerned with the magnitude of a potential correction.”
-Eric Mattson, Excellere Partners

In your opinion, what external forces have shaped or will most significantly shape dealflow in Q4 and 2017?

“Absent a significant geopolitical event that disrupts the global capital markets, or a severe tightening of credit, we’re not seeing anything on the horizon that’s signaling a dramatic change in the M&A markets. PE still has massive amounts of capital to deploy, the public corporations still have growth targets to hit, and mid-market business owners are approaching retirement age at an increasing rate. Therefore, Mergers and Acquisitions will remain strong for the foreseeable future.”
-Eric Mattson, Excellere Partners

“In 2016, the single factor that has helped M&A activity has been the economic stability of the United States. The economic strength is providing record high amounts of cash being used for investing in acquisitions. This stability has also continued to attract foreign buyers interested in investing here.”
-Mike Richmond, The DAK Group

“If there was one event that would have a major effect on deal flow the next few quarters, it would be whether the Fed raises rates in November or December. If rates go up, overall deal acquisition multiples may decline, which could stall some deals and deal flow. Certainly the election, especially if Trump wins, could have some impact as a result of post-election volatility and uncertainty, but interest rates, in my mind, remain a key driver of financing and multiples and trickle down to affecting deal flow.”
-Arun Prakash, Carbon Arrow Advisors

For more information, Contact Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

How can Megabite Restaurant Brokers sell your restaurant, bar or nightclub business? You can discreetly and confidentially contact a broker at Contact Us, read other testimonials at Client Testimonials, search buyers at SEARCH OUR BUYERS or research more info here if you just want to understand how to SELL A BUSINESS.

What I Wish I Knew Before Selling My Business

Administrator October 14, 2016October 11, 2016 General, Preparing your Restaurant for Sale

“What I Wish I Knew Before Selling My Business”

By Meghan Daniels, Axial | June 29, 2016

Entrepreneur Chad Elms spent most of his childhood in Stephenville, Texas, the self-proclaimed Cowboy Capital of the World, “making things and trying to sell them for money.”

He came from a family of cowboys and business owners — his grandparents started a western wear store in the 1950s that his parents later took over. Chad got his start in business fashioning braided key chains and leather decorations for cowboy boots festooned with beads and conchos and silver — “things you’d never see anywhere but the country.”

But when he grew up, he decided to go into physical therapy, in part to keep his cowboy relatives healthy, he jokes. Still, “that entrepreneurial spirit was always there.”

When Chad was first entering the world of PT, he watched as one of his mentors started his own company. “I didn’t know until then that you could have a service-oriented business and be self-employed. I thought that was so cool. He had a number of outpatient clinics, and was able to make his own decisions and guide the company as he felt best.”

As he entered PT school, “I always had starting my own company in my mind as a goal.”

Considering Capital

Fast forward a few years, and Chad and his business partner at the time had founded Momentum Physical Therapy & Sports Rehab in a suburb outside San Antonio, Texas. Despite “not knowing anything about running a business,” they bootstrapped their way to impressive growth, taking out small lines of credit at local banks and paying them back as quickly as possible. They opened another location, then another. After the third, they started financing their growth through cash flow. Before Chad knew it, he had been running the business for a dozen years and Momentum had expanded to 10 locations in the San Antonio area.

The team started thinking about raising capital to grow more quickly. “We were exploring all the different options on the table — traditional lenders, banks, PE groups, VCs, and we weren’t finding the right fit. At the point, the idea of being purchased wasn’t on the table.” Still, people were reaching out to them, especially as they began to be recognized nationally for their success — Momentum was on the Inc. 5000 list of America’s fastest growing companies two out of three years in a row.

“We kept pushing people off, saying that we weren’t interested,” says Chad. He started using Axial with the intent to find a private equity group, but instead got in touch with a strategic acquirer that had expertise and knowledge in their field, Houston-based U.S. Physical Therapy Inc. “They could provide more robust systems, and help us grow the right way. We decided that maybe it did make sense to shift gears a bit and bring on a strategic partner to help achieve our vision.”

Eventually, U.S. Physical Therapy Inc. bought 60% of Momentum for $7.2 million.

Lessons Learned – Selling My Business

Chad acknowledges that letting go of control of the company he had worked so hard to build wasn’t easy, and says he learned a few hard lessons along the way. Here’s the advice he has for fellow CEOs considering M&A.

1. Make sure you’re emotionally ready for a change.

“When you’ve worked 12 or 13 years to build something, it’s scary to think about selling a majority share,” says Chad. “The number one piece of advice we got from mentors and people who had done it before was to make sure you’re mentally and emotionally ready for things to change, because they will change. Your role won’t be the same.”

Says Chad, before the sale, “I had a lot of involvement with our executive team, providing leadership and strategic planning, but I was also the guy that handled all the financial planning and budgeting and spreadsheets — I was basically the comptroller. That was a huge thing to give up when we were acquired — a lot of the detail stuff I was doing got rolled up under the corporate umbrella, and that was a big change.”

2. You have to have a team.

“Neither my business partner nor I had any idea how detail-oriented the process would be, how many documents we would have to compile,” says Chad. “It was very, very labor intensive.”

He says that one of the most important pieces of advice their advisor gave was to build a deal team. “You’ve got to have people on your team helping you compile this info — you can’t do it alone. You can’t take the eye off the ball of running your business this long to get things done or operations will really start to trail off.”

It’s crucial “to either have a team in place that can continue to drive the operations and growth of the business while you focus and pour yourself into all that preparation and time that goes into getting a merger done, or have a team that’s dedicated to the M&A process, so that you’re not draining from existing resources.”

Chad tells the story of a friend who was looking to sell a tech company without a deal team in place. “When he first started the conversation about M&A and potential sale, the value that they were talking about was really high — a nice value. He spent the next 12 months getting the deal to the point where they were ready to sign.

“But then the acquiring company came back to him and said, ‘We can’t pay what we first talking about because the performance of your business has gone down.’ The value had taken a nosedive because the owner was investing all his time into the transaction.”

“The value had taken a nosedive because the owner was investing all his time into the transaction.”

3. Don’t overlook culture.

“One of the things that made me want to go into business for myself in the first place was to build a culture where we were more like family, a close-knit community that delivered unparalleled care,” says Chad.

Working with an advisor helped him understand how important a cultural fit was when searching for a partner, as did watching others go through mergers. “I think we made the right decision, but I’ve seen others that have sold their companies and stayed on as an employee afterwards — they ended up having to make an ugly exit from this company that they had built and grown.”

4. Don’t underestimate the complexity of integration.

Integration can be the most difficult part of an inherently challenging process. “Knowing we were like-minded with our new partners, and sharing such similarities of culture and vision and all those things,” Chad says, may have led him to assume the transition from two companies to one would be an easy one. “It has been really good for the most part, but we did underestimate the number of changes. Even though it was mostly for the better, it’s still a change.” In particular, Chad regrets the uncertainty the changes caused for his staff.

“What I would have done differently is to communicate more with our partner. There were some things in the fog of the changeover that fell through the cracks. We thought they were taking care of it, they thought we were taking care of it.” A detailed calendar of dates and timelines and responsibilities would have allayed some of those concerns and made the transition more seamless for both sides.

5. Find an advisor you trust.

“I honestly can’t say enough about how helpful our broker was throughout the process,” says Chad. “I can’t imagine trying to go through the process on our own.”

Before engaging Martin Healthcare Advisors through Axial, he had already received a few offers for the business. “We really thought, ‘We’ve got this wrapped up, we don’t need to bring anyone in at this point.’ We thought we were standing at the 95-yard line with 5 yards to go.” After bringing in an advisor, though, “it became apparent that we were standing at the 5-yard line with 95 to go. They helped us to see that this would be a marathon, not a sprint.”

Chad says the offers the company received before engaging Martin Healthcare “were half of what we received after we brought them in.”

The offers the company received before engaging an advisor “were half of what we received after we brought them in.”

In addition to helping maximize their valuation, Chad says that Martin Healthcare’s “knowledge and experience in negotiating multitudes of previous M&A deals gave us insight on some of the other intangibles we needed to negotiate. Everyone thinks about the initial buy-out price, but not a lot of people put much thought into details like employment contracts, your specific role after the merger, earn-outs, etc. Having a trusted advisor was invaluable for us in knowing what things we should be paying attention to, as well as what things were usual and customary to ask for throughout the negotiations.”

Martin Healthcare was also crucial when it came to preparing marketing materials and preparing for meetings with potential buyers. They “coached us on the right questions we should be asking, in order to ensure we were ultimately picking in the right partner.”

Chad says his biggest piece of advice to “make sure that you’re working with a broker that represents your best interests. Bigger companies are in the mode of doing mergers and acquisitions all the time — they’re good at it. No matter how ethical they are, they’re going to work out the deal in a way that keeps their company’s best interests top of mind. You need somebody fighting for yours too.”

For more information, Contact Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

The Cost Of Not Having an Exit Plan

Administrator October 7, 2016October 11, 2016 General, Preparing your Restaurant for Sale

The Cost Of Not Having an Exit Plan

By Peter G Christman, Cepa

Not too long ago, a CEPA emailed me and asked, “what is the cost of not having an exit plan or master plan?” I thought that was a great “ask” because I have never seen that question quantified. I wrote and told him I needed to think over that question. This is an attempt to provide that CEPA with some kind of intelligent answer.

My immediate response to the cost question is a common answer in the business of Master Planning, “it depends”.

Yes, it depends on a lot of factors: in fact too many to mention in this space. The real answer is that not having a plan can only be measured by three costs: loss of enterprise value, the morality cost of not doing the right thing, and the cost of timing.

The real cost of not having a plan is the cost of increased risks in each of the above areas!! Having a Master Plan greatly decreases your risk factors!!

Loss of Enterprise Value:

The biggest risk in all of these areas is the fact that business owners are human!!

What will be the effect if the owner is not involved or gone from operations forever??

I have seen statistics from the financial planning industry that says 50% of businesses who lose their owners because of disability or death become insolvent in two years.

There is no available guarantee that provides for owners to be around today, tomorrow, next month, next year, etc.

Just how is this risk quantifiable? Again, “it depends”! The size of the business, current business value, business operations assessment, industry, company resources, people, products, facilities, etc. all come into play in calculating the risk of being “human”.

If a Master Plan is in effect to “maximize the value of the business” as described in “Leg One” of a Master Plan and something happens to the owner, at least the blueprint for success and increasing company value is in place for others to implement.

THE MORALITY COST OF NOT DOING THE RIGHT THING:

Often a business owner is involved in being a “lifestyle” owner and they forget the “responsibilities” they have as a business owner. One the biggest they have is to their employees.

The company’s future success has a resonating effect on the success of each employee’s life and family.

BUT, if the owner doesn’t have a Master Plan in place and the business fails or their growth deteriorates and value decreases what is the cost effect of upon their employees and families????

How is that measured???

THE COST OF TIMING:

This cost covers a lot of risks in all legs of the stool.

In “Leg One”, what if products, services aren’t timed perfectly as they would be in a good Master Plan. How about the recruitment of personnel in a timely manner?

In “Leg Two” what about the timing of someone selling their business without appropriate financial planning? What if their financial resources fall short of the owner’s life span, etc.? What if there is no estate planning or poor planning and the business has to be sold to cover taxes when the owner dies?

How can the costs of these results be measured??

In “Leg Three”, what if they transition from the business without a life plan? What if family members aren’t involved? What if the owner loses their personal identification? What is cost of all of this personal non-planning?

SUMMARY:

I could write a book (and have) about this subject of “What is the Cost of Not Having a Master Plan or Exit Plan”.

Cost can only be measured in the “risks” that aren’t covered or are created without a plan in place.

Of course, the biggest risk that every owner must cover is the risk of being “human”!!!

This makes having a plan in place…………………………..mandatory!!!!

For more information, Contact Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Buyer-Seller Confidence Index: Small Business Sellers Remain Confident about Prices

Administrator September 30, 2016October 4, 2016 Buyers Seeking Restaurants Bars Food Service, General, Preparing your Restaurant for Sale

Media Release from BizBuySell … 2016 Buyer-Seller Confidence Index: Small Business Sellers Remain Confident in Current Market but the Gap is Closing as Buyers Seeing More Realistic Asking Prices

BizBuySell
September 27, 2016

Both Buyers & Sellers Say Election Result Could Change Their Plans in the Market, Data Shows a Clinton Win Could Lead to More Sellers in 2017

San Francisco, CA – BizBuySell.com, the Internet’s largest business-for-sale marketplace, announced today the release of its 2016 Buyer-Seller Confidence Index, a national indicator of small business buyer and seller sentiment of the current business-for-sale environment. The confidence index is calculated by evaluating survey responses of more than 2,000 people interested in either buying or selling a small business. A separate score is calculated for both current small business owners interested in selling and prospective buyers currently exploring the market. Each group’s score ranges from 0 to 100, with 100 representing a perfect environment for buying or selling a business and a score of 50 representing neutral confidence.

This year’s survey results show that while sellers continue to feel more confident than prospective buyers in the today’s market, the gap is closing. The 2016 Seller Index stands at 59, down slightly from 62 in 2015, while the 2016 Buyer Index grew to 49, up from 47 a year ago.

Overall, the Seller Index did drop three points from last year, but the 59 score remain higher than the 56 reported in both 2013 and 2014. In fact, nearly 60 percent of respondents said they are confident that they would receive a price that met expectations if they sold their business today. A majority (65 percent) also believe that they could get either the same or a higher price than they could last year.

Looking at the Seller Index’s slight dip more closely, owners appear to be a little less confident in the future than they were last year. In 2015, 59 percent of sellers believed they could wait a year and receive a higher price for their business. In 2016, that number dropped to 48 percent. Concerns of those with lower confidence include fear of a depressed small business environment and economy (38 percent), increasing costs (31 percent), declining sales and revenue (22 percent), changing wage regulations (17 percent) and changing healthcare regulations (15 percent).

Similarly, this year’s survey shows that almost 48 percent of owners believe selling right now would be difficult in terms of time, effort and expense. Just 40 percent believed the same in 2015. So what is making it more difficult? The top reason why owners said they couldn’t sell right now was that they didn’t believe they could get enough money to fund their future plans, whether that be retirement, a new venture or another purchase. Others said they couldn’t find a buyer right now or didn’t believe their business was performing well enough.

“While the Seller Index fell a few points, overall optimism remains,” Bob House, President of BizBuySell.com, said. “We’re seeing rising financials from most of the businesses sold on our marketplace this year so it makes sense that now would be viewed as a good time to sell.”

Prospective Buyers Noticing More Acceptable Asking Prices, Improving Small Business Economy

As is evident by the increasing Buyer Confidence Index score, buyers appear to be growing more confident they can hold their own at the negotiating table. Seventy-three percent of buyers said they would be able to buy a business today for an acceptable price, a slight increase from the 70 percent that said the same last year. When asked what makes small business sale prices more acceptable this year, most potential buyers credit owners for setting a more realistic price (38 percent) while others attribute the change to an improving small business environment and economy (35 percent), less demand/competition for listings (29 percent) and increased supply of businesses for sale (23 percent). Interestingly, sellers list the small business economy as a concern but buyers are seeing it as a positive.

In the bigger picture, however, buyers remain less confident in the market than sellers. Naturally, buyers are suspect of the other side as 60 percent believe small businesses for sale are currently overvalued, compared with just 4 percent who believe they are undervalued. Because of this, nearly half of buyers said buying a business right now would be difficult in terms of time, effort and expense. Many didn’t see the environment changing either as only 29 percent said they thought they can get a better deal if they wait a year to purchase. Most (56 percent) said prices would likely stay at their current values in 2017.

For those buyers who are still waiting to pull the trigger, the key constraint appears to be limited supply of suitable businesses as opposed to availability of financing. This year’s top inhibitor to ownership was simply not finding the right business (44 percent), much more common than those who said they don’t have available capital (25 percent) or can’t find funding sources (7 percent).

“It’s good to see the gap closing between buyers and sellers and a more balanced market forming,” House said. “As we move closer to 2017, it will be interesting to see how variables like the election results impact confidence.”

Buyers & Sellers Say the Election Result Could Determine Their Plans to Enter or Exit Small Business Ownership

With the U.S. Presidential election fast approaching, it’s possible these confidence numbers could be influenced by the winner. It appears both buyers and sellers would be more confident under a Donald Trump presidency. Fifty-seven percent of sellers and 54 percent of buyers said Donald Trump is the candidate who would most improve the small business environment. Comparatively, just 27 percent of sellers and 31 percent of buyers feel Hillary Clinton would most improve the small business environment. Further, 53 percent of sellers and 47 percent of buyers believe the small business environment would worsen if Hillary Clinton was elected.

Perhaps more telling than voting direction is that a significant number of buyers and sellers say they will actually change their ownership plans based on who wins, specifically if the less-favored Hilary Clinton takes office. In fact, one in five sellers said they would be more likely to sell their business if Hillary Clinton is elected President. Similarly, 31 percent of buyers said they would be less likely to enter small business ownership if Clinton wins.

Clinton supporters said they might take similar action should Donald Trump win. Sixteen percent of current owners said they would be more likely to sell and 15 percent of buyers said they would be less likely to buy if Trump wins the election.

So just why is the election result so important to small business owners and prospective buyers this year? When asked what issues were most important to them, both parties list tax reform, health care, economic policies, and jobs in that order.

Sellers Not Fond of New Overtime Regulation While Buyers Actually Support Them

Beyond the election, another issue impacting the small business community is the new Department of Labor overtime rules. Effective December 1, 2016, the new rules mandate any employees making less than $47,476 annually must be paid at least time and a half their regular rate of pay for any hours worked in excess of 40 a week.

Not surprisingly, small business sellers (the owners soon to be directly affected), were more likely to be against the changes. More than a third (37 percent) were against the changes, while 29 percent were in favor of the regulation changes; 22 percent have no opinion and 11 percent said they were not aware of the changes. Looking at the future, almost half (48 percent) of soon-to-be sellers believe the new overtime regulations will decrease the value of small businesses.

Buyers, on the other hand, were more likely to agree with the purpose of the overtime changes. In fact, most (41 percent) prospective buyers are in favor of the overtime changes, and the majority (80 percent) said the changing rules will have no effect on their plans to purchase a small business. It’s possible these buyers see a bargaining chip for the future purchase. Forty-eight percent said the overtime changes will decrease the value of small businesses.

About the BizBuySell’s Business Buyers-Seller Confidence Index

BizBuySell.com is the Internet’s largest marketplace for buying or selling a small business, with over 1.6 million monthly visits. The company releases its Business Buyer-Seller Confidence Index on an annual basis, reporting changes in buyer and seller opinions of the current business-for-sale environment. The index and scores are calculated through a number of weighted survey questions issued to over 2,000 people currently interested in either buying or selling a small business. For more information on the survey findings and index scores, please contact BizBuySell directly.

Media Contact:

Bobby Chilver
Walker Sands Communications
office: (312) 546-4712

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Dallas investment banker: Bull market on ‘last wobbly legs’

Administrator August 23, 2016 General

A Dallas investment banker was recently quoted in the Dallas Business Journal® telling clients to plan for a possible slowdown in the U.S. economy. According to the article published Aug 15, 2016: “I think there’s a greater than 50-50 chance of a recession next year,” Allegiance Capital Chairman David Mahmood said in an interview Monday. “This bull market is on its last wobbly legs.” Business owners who have done well and are thinking of soon selling off their life’s work will likely find few buyers and lower prices if the U.S. economy slips. Cashing at least part of the business out now, he said, might be worth it.

Our perspective at Megabite Restaurant Brokers, LLC echoes the sentiments expressed in the article. The current bull market has now surpassed lasted longer than the postwar bull market from June 1949 to August 1956. The average bull market typically last 4-4.5 years; we are now 7.5 years into this bull run AND we are in a Presidential election year. We forecast a 75% probability of a recession in 2017 given all of the market conditions. We further forecast that the recession will not be small. Our economy experienced the worse recession during 2009-2010 since the great Depression. Volatility and economic swings are likely to increase.

During 2007 and 2008, we had consistently recommended to oilfield service clients to consider exiting their businesses. We believed that oil prices could not continue at $120/barrel. Clients who heeded this advice, had strong exits at high earning multiples and peak valuation.

We are now recommending the same to business owners with companies whose sales are under $10,000,000. We feel that these businesses are the most vulnerable during the next economic downturn.

The Dallas Business Journal article goes on to further comment that there have been bright signs in the U.S. and Dallas market in particular. The U.S. economy added approximately 255,000 jobs last month. Increasing consumer spending is always another welcome indicator, but this spending is slowing down. The flip side is that there have been fluctuations in U.S. economic data and reduced GDP forecasts with whispers of a possible recession. The Olympics have highlighted that once up-and-coming economies like Brazil are sliding back into decay. Europe’s economies have been sluggish, at best, and Brexit will continue to impact European spending.

Business owners must balance opportunity for growth with preservation of their biggest source of retirement funding. Their business typically represents their biggest personal asset. If you feel that it may be time to explore ‘taking some off of the table’, then please contact us to explore an exit plan.

We have MANY active buyers such as this one:

Restaurant Buyer seeks established, preferably profitable, restaurant located in Fort Worth, Keller, Southlake, Westlake, Denton, Grapevine, Colleyville.

Below are the characteristics of a target business for this Restaurant Buyer:

breakfast, lunch cafe
open to any concept
quick casual service or counter service
prefer open seating area
annual sales of $300,000 to $1,000,000
2000 SF +/-
seats 10-40
looking for cities listed above but will consider others
NO franchises

This entrepreneur states that they are able to move quickly on the right transaction. They state that they bring the following resources to the table:

experienced owner Restaurant Buyer
will add cooking academy, classes and bistro
owns food manufacturing in 4000 SF
liquid funds $500,000+, net worth $1,200,000+
Ability to borrow SBA 7a loan

For information, contact us and reference Restaurant Buyer MB6016

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Not the Restaurant Buyer you’re looking for? Search other buyers at SEARCH OUR BUYERS, email or call us to discuss your opportunity. It may fit an active buyer’s search criteria.

Testimonial from Attorney

Administrator August 11, 2016January 25, 2017 General, Preparing your Restaurant for Sale

Testimonial from Attorney

I cannot recommend Jeff Adam highly enough. He maintains a grasp of all of his transactions and never seems to be at a loss of what is going on in each. I have on numerous occasions discussed with Jeff’s clients their appreciation of the personal service he provides whether the transaction involves $100,000 or is a multimillion dollar transaction. If you are looking for someone who understands each and every facet of your business or transaction, you will not be disappointed in choosing Jeff Adam.

Franklin Cram, PC, Attorney at Law

For more information, Contact Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Megabite Restaurant Brokers can help you value, sell or buy a restaurant, bar or nightclub business. You can discreetly and confidentially contact a broker at Contact Us, read other testimonials at Client Testimonials, search buyers at SEARCH OUR BUYERS or research more info here if you just want to understand how to SELL A BUSINESS.

Restaurant For Sale Amarillo Restaurants Profitable Multi-unit, Multi-concept Full-Service 19739 CALL or EMAIL NOW

Administrator July 29, 2016September 10, 2016 Buyers Seeking Restaurants Bars Food Service, For Sale, General

Restaurant For Sale Amarillo Restaurants

MegaBite Restaurant Brokers LLC offers, for your ownership consideration, an established, profitable co-branded, multi-unit, multi-concept full-service restaurants in Amarillo, Texas. The business opened in 2005 and has developed a loyal, dedicated following. The restaurants are known for outstanding food, exceptional service and an atmosphere where people go to be treated like guests. Located in high-traffic areas, the scalable concept restaurants have strong catering and food & beverage sales. The differentiated, niche franchisable concepts are well-established but with opportunities to improve efficiency, increase sales and lower costs. The business has excellent books and records.

The asking price for the assets of the business is $2,850,000 with $750,000 down and $2,100,000 SBA 7a bank financing (10 years, 6%, payments approximately $23,730/month). The seller will consider financing up to $430,000 to a qualified purchaser approved by the seller. The assets include inventory at cost of $154,000, accounts receivables of $40,000 and FFEV (Furniture, Fixtures, Equipment & Vehicles) valued at $145,000. Purchaser will need to assume operating equipment leases such as Ice Machines and dishwashers.

This is a strong location with excellent potential. A new owner can continue to grow the business and increase profit in several ways:

Large Street sign and banners would attract customers,
Distribute flyers to local homes, apartments and businesses,
Increase delivery area to 5 miles from current 3.5 miles,
Advertising,
Internet marketing via website, emails, Yelp, … ,
Continued hands-on owner-operation,
Improve restaurant appearance

For information, contact us and reference Restaurant For Sale Amarillo Restaurants Profitable Multi-unit, Multi-concept Full-Service 19739

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Not the Restaurant For Sale Amarillo Restaurants you’re looking for? Tell us at BUY A RESTAURANT BAR OR NIGHTCLUB and we’ll reach out with new opportunities that fit your search criteria as they arise

Key words: full service, franchise opportunity, catering, E1 E2 Visa, Sushi, Italian, barbecue, pasta, alcohol, liquor, entertainment, fine dining, Mexican, seafood, scale, Tex-Mex, BBQ, Restaurant For Sale Amarillo Restaurants

SOLD Business For Sale Arlington Fast Food Restaurant, Profitable Cash Hamburger eat-in, take-out, delivery with patio 19736, MUST SELL, CALL or EMAIL NOW

Administrator July 28, 2016January 21, 2017 Buyers Seeking Restaurants Bars Food Service, For Sale, General

Business For Sale Arlington Fast Food Restaurant

MegaBite Restaurant Brokers LLC offers, for your ownership consideration, an established, profitable eat-in, takeout and delivery quick service restaurant serving fresh hand-made specialty hamburgers, sandwiches and salads in Arlington, Texas. The business opened in approximately March 2012, has developed a loyal, dedicated following and is an excellent “cash” business. The business is located at the end of a strip center with a south-facing patio visible from busy Street. The dining room is divided into a gaming area (with 2 pool tables and 3 video games) and a seating area. A new owner can increase sales/profit in many ways such as by increasing hours, adding street signage, opening on Sunday, improving restaurant appearance, installing a new menu board, advertising, improving the patio and improving the seating layout. The business will benefit from continued hands-on owner-operation. The owner has bank statements to prove both credit card sales and records to prove cash sales. After an offer is in place, a buyer will be allowed to monitor the business during due diligence to ensure they are satisfied with the owner’s sales and expenses.

UPDATE: SOLD – Sale CLOSED September 2016

This is a strong location with excellent potential. A new owner can continue to grow the business and increase profit in several ways:

Large Street sign and banners would attract customers,
Distribute flyers to local homes, apartments and businesses,
Increase delivery area to 5 miles from current 3.5 miles,
Advertising,
Internet marketing via website, emails, Yelp, … ,
Continued hands-on owner-operation,
Improve restaurant appearance

The asking price for the assets of the business is $80,000. Seller prefers ALL-CASH but will consider a SMALL amount of seller-financing to a qualified buyer approved by the seller. The assets include inventory at cost of $1,500 and FFE (Furniture, Fixtures and Equipment) valued at $45,000. Purchaser will need to assume the following leased item: Ice Machine approximately $156/per month

For information, contact us and reference Business For Sale Arlington Fast Food Restaurant 19736

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Not what you’re looking for? Tell us at BUY A RESTAURANT BAR OR NIGHTCLUB and we’ll reach out with new opportunities that fit your search criteria as they arise

Key words: fast food, fry, quick casual, deli, fresh, homestyle, E2 Visa, fast-food, fastfood, french fries, burgers, McDonalds, Wendys, Burger King, In-N-Out Burger, Low Carb, not franchise

SOLD Mr Jims Pizza For Sale High volume CALL or EMAIL NOW

Administrator July 22, 2016January 21, 2017 Buyers Seeking Restaurants Bars Food Service, For Sale, General

Mr Jims Pizza FOR SALE New on market !

MegaBite Restaurant Brokers, LLC offers, for your ownership consideration, a ~20+ year established pick-up and delivery Mr Jims Pizza franchise in Grand Prairie, Texas serving an exclusive territory in and around Grand Prairie, Texas. The restaurant location is newly built in 2015, very clean and in excellent condition. The location is on a major state highway in a large, busy strip center. Sales are $400,000 +/- with many growth opportunities. Trained staff in place.

UPDATE: SOLD – Sale CLOSED November 2016

This is a strong location with excellent potential. A new owner can SUBSTANTIALLY grow the business and profits in several ways:
• Advertising
• Distribute door hangars to neighboring homes
• Market to schools, booster groups, sports associations
• expand operating hours
• Build catering business with family sized portions
• Internet marketing via Facebook, Constant Contact, Website, Yelp, …
• Continue to build on-line ordering from current levels

For information, contact us and reference Mr Jims Pizza # 19741

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Not what you’re looking for? Tell us at BUY A RESTAURANT BAR OR NIGHTCLUB and we’ll reach out with new opportunities that fit your search criteria as they arise

Pizza cuisine is a flatbread generally topped with tomato sauce and cheese and baked in an oven. It is commonly topped with a selection of meats, vegetables and condiments. The term was first recorded in the 10th century, in a Latin manuscript from Gaeta in Central Italy. The modern pizza was invented in Naples, Italy, and the dish and its variants have since become popular in many areas of the world. In 2009, upon Italy’s request, Neapolitan pizza was safeguarded in the European Union as a Traditional Specialty Guaranteed dish. The Associazione Verace Pizza Napoletana (the True Neapolitan Pizza Association) is a non-profit organization founded in 1984 with headquarters in Naples. It promotes and protects the “true Neapolitan pizza”. Pizza is sold fresh or frozen, either whole or in portions, and is a common fast food item in Europe and North America. Various types of ovens are used to cook them and many varieties exist. Several similar dishes are prepared from ingredients commonly used in pizza preparation, such as calzone and stromboli.

SOLD Frisco Indian Restaurant FOR SALE, New on market ! 19742

Administrator July 14, 2016March 3, 2017 For Sale, General

Frisco Indian Restaurant FOR SALE

MegaBite Restaurant Brokers LLC offers, for your ownership consideration, an Indian Restaurant offering delicious Indian dishes (vegetarian and non-vegetarian) in a relaxing atmosphere. The restaurant has quickly developed a loyal and dedicated following; the owner estimates that 75% of the client base is repeat. Banquets and catering also generate ~15-20% of monthly sales. Known for its consistent and quality food, the restaurant offers extensive lunch buffets, Dinner menu service and private banquets. Sales $600k +/- and growing.

The restaurant has quickly developed a loyal and dedicated following; the owner estimates that 75% of the client base is repeat. Banquets and catering generate ~25- 30% of monthly sales. Known for its consistent and quality food, the restaurant offers extensive lunch buffets and Dinner menu service. Beer and wine is served. The mixed beverage permit allows for a full bar. The restaurant has many growth opportunities and is well-located in the high-growth North Plano – Frisco corridor.

UPDATE: SOLD – Sale CLOSED September 2016

For information, contact us and reference Frisco Indian Restaurant # 19742

Megabite Restaurant Brokers, LLC
Phone: (817) 467-2161
www.megabite-rb.com

Not what you’re looking for? Tell us at BUY A RESTAURANT BAR OR NIGHTCLUB and we’ll reach out with new opportunities that fit your search criteria as they arise