what information do I need if I am going to purchase a restaurant
Financial Documents
- Request profit and loss statements for the past 3 years from the current owner or seller of the restaurant
- Review the profit and loss statements to evaluate the financial performance of the restaurant over the past 3 years
- Ask for balance sheets for the past 3 years from the current owner or seller of the restaurant
- Examine the balance sheets to understand the restaurant's assets, liabilities, and equity over the past 3 years
- Obtain tax returns for the past 3 years from the current owner or seller of the restaurant
- Review the tax returns to ensure that the restaurant has been compliant with tax regulations and to evaluate its financial health
- Request cash flow statements for the past year from the current owner or seller of the restaurant
- Analyze the cash flow statements to assess the restaurant's ability to generate cash and manage its expenses in the past year
- Ask for accounts receivable and payable reports from the current owner or seller of the restaurant
- Examine the reports to understand the restaurant's outstanding debts and obligations to suppliers and customers
Legal Documents
Operational Documents
Staffing Information
Customer Data
Physical Assets
- Copies of recent utility bills
- Contracts for any services such as cleaning or landscaping
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