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How Restaurant Realty Company Maintains Strict Confidentiality in Marketing its Restaurants For Sale

By in 1999 - Volume 1

Confidentiality is extremely important in marketing a business for sale as it can be a very sensitive time to keep a business running smoothly prior to a transition. In dealing with a confidential sale, before I will give any buyer the name, address and financial information of the restaurant, bar and/or club for sale I do the following:

  1. Screen the Buyer– In screening a prospective buyer I ask the following questions: Are they in the restaurant business? If so what is their scope of experience – have they owned, managed and/or worked in a restaurant and for how long? What kind of restaurant have they been involved with, i.e. dinner house, cafe, coffee shop, ethnic or fast food restaurant? What size of restaurant have they been involved with, i.e. square footage and number of seats? What kind of restaurant are they looking for? Do they want to buy an ongoing successful operating restaurant or are they just looking for a fully equipped restaurant with a good location? Who are the decision makers? What is their time frame? What is their source of cash – their own savings, family loans, bank loans, etc.? When will the cash be available and where is the cash? How is their credit and what is their financial situation? (All landlords are going to require the buyers current credit history, personal financial situation and most recent tax returns as well as their resume and business plan).
  2. Have the Buyer Sign a Confidentiality Statement – Once the prospective buyer answers the above questions appropriately and I am convinced that he/she is a sincere buyer I will have him/her sign a confidentiality statement which says the buyer will keep the information (name, address, financial information, etc.) delivered to him/her confidential. Additionally the buyer is instructed to act as a regular customer when he/she goes into the restaurant and not snoop around.
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About The Author
Steven Zimmerman, CBI, M&AMI, CBB, FIBBA

Steve is the Founder, Principal Broker and Chief Executive Officer of Restaurant Realty Company. Steve has personally sold/leased over 1,000 restaurant, bar and/or nightclub businesses and many related commercial buildings totaling 2+ million square feet of commercial space, collaborated with over 2,000 clients and completed over 3,000 valuations since 1996.His real estate experience also includes sales, acquisitions, management and ownership of numerous properties throughout California including restaurants, hotels, apartment buildings, single family houses, an office building and a multi-use retail building. Steve is also the author of Restaurant Dealmaker – An Insider’s Trade Secrets for Buying a Restaurant, Bar or Club available on Amazon. Prior to starting Restaurant Realty Company Steve had over 20 years of restaurant experience and was President and Chief Executive officer of Zim’s Restaurants, which was one of the largest privately owned restaurant chains in the San Francisco Bay Area. READ FULL BIO | HIRE EXPERT WITNESS - LEARN MORE