b'BUSINESSPART 2 How to Sell Your Catering CompanyA s consultants specializing in Factors a Buyer Will Considerthe catering industry, one of theA potential buyer will be interested in the most frequent questions we arecash flow generated by the seller, but there What you need toasked is: How do I go about selling myare other considerations as well:catering business? A strong history of stable earnings: know if youre thinkingMany caterers, including some of theStable revenues and earnings are of prime about getting outmost successful catering entrepreneurs,importance to a buyer. Are your revenues entered the business almost by accident. Inand earnings growing or shrinking? Are of the business our experience, very few caterers startedyour net margins growing or shrinking?their companies with a detailed businessMarket position:The dominant plan that included an eventual exit strategy.caterers in any given market are generally BY CARL SACKS, CERTIFIEDBut many catering companies are nicelygoing to be the most attractive targets for CATERING CONSULTANTS profitable, and profitable businesses can beacquisition. There are some exceptions to bought and sold. this rule, but in general buyers are looking In this article, youll learn aboutfor top-of-the-food-chain operators.maximizing the value of your cateringGeographic location:While there are company, factors a buyer will considercertainly exceptions, generally it is better to be and preparing your business to go on thelocated close to growing and major population market. (See the September/October issuecenters. You can be located on a farm, but if of CFE for part one of the article, whichthat farm is close to a large and growing city, covers the different categories of caterers,your business will be worth more. Exceptions which types of catering companies areto this rule include companies that dominate most likely to sell and who the buyers are.) their respective markets.56 CATERING, FOODSERVICE & EVENTS cfe-news.com'