As a takeaway business, there are many reasons you may wish to sell your company, from health concerns, owner retirement or to pursue alternative business interests. By approaching a business transfer agent, you can unlock access to years of industry knowledge and one-to-one guidance to support the sale of your business.
If you’re considering selling your takeaway shop or food delivery company, you will need to conduct a business valuation, prepare your business for the sale process, and collate the relevant information required for prospective fast-food takeaway owners.
As a takeaway owner responsible for the future of your business, deciding to sell can be difficult. The Selling My Business team will help craft a detailed plan running up to the sale of your business. It is common for company directors to prepare for the company sale process years in advance, however, this decision may also be made over a matter of months. By achieving financial targets, showcasing growth potential and generating an optimum turnover, takeaway owners can financially plan for the future of the company accordingly.
As the food industry is concentrated with serious contenders, from global players to homegrown UK brands, the challenge is on for takeaways to extend their service offering and polish service standards. As consumer expectations rise, industry trends are influencing the way consumers behave and competitors react. Businesses are adapting by extending menus and increasing dietary options, in line with upgraded health and safety standards and growing calls for sustainable sourcing.
The coronavirus pandemic led to curfews and restrictions on restaurant and takeaway dine-in areas. This pushed businesses to rapidly adapt by fast-tracking the roll-out of takeaway food delivery services to provide long-term protection and preserve financial health.
To continue providing takeaway services on a local level, and to fulfil consumer demand, many food delivery businesses digitised their services to offer click and collect and food delivery. Following the pressure on takeaway services to provide post-curfew deliveries, food and hospitality businesses transitioned fast under time-sensitive circumstances.
Facing challenges such as operating on a reduced capacity and enforcing social distancing measures, businesses incorporated delivery services to survive during multiple Covid-19 lockdowns. To prevent disruption to consumer demand, food delivery leaders, Uber Eats, Deliveroo and Just Eat played a key part. By bridging the gap between customers and takeaway providers, these delivery services, in addition to independent delivery drivers, provided an outsourced solution.
At Selling My Business, we offer a transparent payment structure and never ask for payment in advance. Founded over 60 years ago, we have the hands-on experience required to prepare takeaway businesses for the open market. From fast-food takeout’s, local Fish and Chip shops, to takeaways operating under a franchise license, we are skilled in sourcing suitable buyers through our database of over 10,000 buyers and industry connections. We have a proven record of successful sales in the food sector, including fish and chips shops, cafes, and tearooms.
When preparing your takeaway food shop or takeout restaurant for the sale process, you will need to conduct a series of checks on your business to ensure that it is presented in the best light for prospective buyers. This stage will consist of streamlining your company and ensuring that it operates efficiently. A valuation of your takeaway will be conducted, taking into consideration revenue, expenditure and recurring overheads to help determine a sale price.
To advertise your business for sale, you will need to prepare an information memorandum, also known as a sales memorandum which functions as a visual sales pitch to prospective buyers. This document will creatively highlight why your takeaway business is an attractive acquisition opportunity and summarise the core strengths of your takeout collection and/or delivery business. An information memorandum will consist of the following information:
If the sale of your takeaway business is sensitive, prospective buyers demonstrating a genuine interest in your takeout will be bound by a Non-Disclosure Agreement (NDA). By advertising your business for sale confidentially, employee interests can be protected and the release of information to competitors can be controlled.
The Selling My Business team will conduct due diligence to help verify genuine buyers and protect your business against unexpected liabilities. By ensuring that expectations are clear and both parties are in mutual agreement, future disagreements can be prevented which could otherwise disrupt the sale of your takeaway. If you are interested in selling your takeaway, the Selling My Business team can offer a free consultation and valuation to help create a roadmap leading to the successful sale of your business.
"After 26 successful years of trading, I aspired to secure a buyer for my takeout business ahead of my retirement. The Selling My Business team crafted a timeline that worked around me, sourcing a suitable buyer, and completing the sale with time to spare. "
Kamal - Indian Takeaway and Restaurant, Leeds
As experienced UK business valuers, the Selling My Business team are well versed in conducting the appraisal of takeout shops, restaurants, and fast-food delivery services. Founded in 1956, our seasoned team of valuation professionals can share their knowledge on industry best practices and explain how to value a takeaway.
The Selling My Business team will guide you throughout the valuation of a takeaway business, and help prepare your business for entry to the open market. Valuing a takeaway business consists of taking into consideration fixed assets and those that are intangible, such as:
Ownership rights – Freehold and Leasehold. Are there any restrictive covenants on the property which could impact the possibility of an extension? If your property is tied to a commercial lease, does it permit for the property to be used as a takeaway? If the property is leasehold, you will need to indicate the number of years remaining on the lease.
Property – The property type and the overall condition of the property will impact the valuation price. The fixtures and fittings enclosed will contribute towards the value of the business and influence what prospective buyers are willing to pay. Additional areas, such as a waiting room, food preparation area, delivery area and dining area will add value to your takeaway.
In addition to fixed assets, factors such as the physical location of your property will be taken into consideration. Takeaway footfall is likely to be influenced by several factors, including whether the area is residential, commercial, rural, or urban.
Assets – Industrial machinery, equipment, assets and stock owned by your takeaway business will contribute towards the value of your business. This will vary depending on the cuisine and specialisms. For example, a fish and chips takeaway will consist of a fish fryer, chip scuttle, heated cabinet and specialist equipment, whereas an authentic Indian takeaway would typically consist of a clay oven tandoor and gyros rotisserie. Intangible assets can include intellectual property, trademarks, brand identity and reputation.
Our in-house valuation team offer a free takeaway business valuation to business owners interested in selling their takeaway. The Selling My Business team will guide you throughout valuing a takeaway business and have a strong track record of selling both independent and franchise takeaways across the country.
If you are wondering how to value a takeaway business, contact the Selling My Business valuation team to access industry knowledge based on our collective experience of over 100 years. Our takeaway business valuation will help calculate the value of your business and determine a suitable price that will accurately reflect market value. Conducting a valuation is essential as this will define the bracket of buyers you are likely to attract and the calibre of business you are selling.
When conducting a takeaway business valuation, the Selling My Business team will identify areas that are valuable to prospective buyers and recommend ways to bolster the standing of your takeaway against similar business sale opportunities in the food sector.
Contemplating selling your business? Our free, comprehensive guide will walk you through how you can sell your company. Our FREE guide covers all of the essentials, including:
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