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How do you Sell a store?/Rant

A

aceoperative

New member
I am new to pizza biz. i have been Business for almost 2 years now. We have 2 stores now. I started with my 2 brothers and we cannot get along at all. One lives 1000 miles away and the other expects me to do everything, and is mad when it is not to his liking. i am finished with these partners. It is ruining our entire family. I need to sell the store. i have now idea how to do it. I came up with all the recipes, systems, I do all the orders all the paperwork/taxes, all the scheduling,hiring,training, and every little problem detail thing from computers to construction. and the shop runs at super cost. How do i get out of this? How much is it really worth? Does anyone know an honest broker? I have a tiny spot, 970sq ft. I have been grossing and average of $50,000 a month and i average net $15,000 a month. Is that good for a pizza place? We have the potential to double that but my partners dont do anything, and i am not doing anything till they are out. Any suggestions how i can get them out or sell the store, i’ve heard its impossible to get a small business loan right now. is that true? any help from you pros would be great, or anyone going through something simuliar who wants to vent, I am hear to relate:)
 
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You’ve been open for two years, net $15,000 per month and the partners can’t get along? Usually partner and family fighting is because the business if failing… this is a new one.
 
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The only thing that makes sense in your post is that you’re tired and want out. If you have 2 other partners then offer to sell your stake.

IF your tiny store is grossing 50K/mo and netting 15K/mo, why don’t you have a manager? Since you have 2 stores, what is your 2nd store doing and who is running it?

Netting 15K/mo is a GOOD problem and being tired is a result of that.

So you think you can double the 50 to a 100K/mo? Hmmmm, you must a have 3 or 4 truck deliveries/wk. Having any storage issues?
 
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Where are you located? If your numbers are accurate you should’t have any problems finding a buyer. If it were me, I would offer to buy out the partners and then hire a quality manager for the day-to-operations and spend my time concentrating on the business side of things.
 
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Its Funny the more we make the more we fight. As far as storage fridays delivery can get tricky but i am pretty organized. I do get three deliveries a week. The other thing is we are in Vail so we gross $50,000 for 5 mos $35,000 for three mos and $20,-$25,000 for 4 mos. depending on summer winter or off season. I would like to stay in it but the prob with buying them out is they want all the money now, and I dont have it. How much do you think this business is worth? Does anyone know a good/honest broker? Hasn’t anyone ever sold a pizza shop on here? How did it go? how did you advertise it?
 
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Hard to say what your store is worth when you only tell us what your most profitable months are . . .

Check your mail as you should be receiving solicitations from brokers every week/or they are dropping off envelopes. Usually they say “confidential/for owner only” on the front.

Google, Yellow Pages, etc. will turn up brokers. Just start calling them, discuss your situation and you will get a feel for things and what your options are.

I’d ask what you arrangement is with your brothers only it really doesn’t matter if no one is happy. I agree its better to sever business ties and move on if you are not happy.

Figure out how much “you” will be left with upon selling the business and what you could afford to pay off your brothers monthly. Maybe once you have “real” numbers to talk about they will be open to a buy out. Or, maybe you will net yourself enough money upon a sell to purchase another place yourself.

Forget about what you put into the place as the sale price is only based upon your sales and profits (that you can prove!).
 
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Ace,

Based on what you’ve said so far, your sales are probably $360-$390K gross per year. You’re in a high cost area. You don’t seem to call the shots. What is the ownership of the company? On those sales, with DEBT, you’re probably lucky to break even. Without debt, you’re making a little, but after a 3-way split (and thats if its an even 33.3), you’re making less than a little. This would provide reason for the conflict.

Here’s your dilemma: you don’t own enough to sell, and they don’t wish to. So talking to a broker is like wishing for a winning ticket. IF you were to own 100% or obtain an agreement to sell, you’re still up a hard lane. Do you own any property, or is it leased? Probably leased. If you owned the property, well, you’d probably owe on it already… Anyone with cash these days isn’t going to buy into a job earning $30K/yr working 70hrs/wk.

IF you don’t own anything… QUIT and leave. If you do own some portion of it(legally), advise them that you’re considering quitting. If they don’t care, then leave. This probably doesn’t help, but if they’re not interested in working, neither should you.
 
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We all 33.3 and ready to sell. Thats the prob. no matter how much we make after 3 way split might as well have a job. It would be great if it was just one guy. Rent is cheap in our spot and we do have a niche. We also have a decent patio that we havent tapped into yet as last year we were not selling liquor. And we are now setting it up for the first time. Anyway if anyone knows a broker they have actually used, and was good, please let me know.
 
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Find a good lawyer. Then post on craigslist. Make sure younfind a business lawyer. Some who is experienced in writing these contracts. Getting a broker just cuts into your profit.
 
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