Ep #27: The Top 5 Due Diligence Items for Restaurant Buyers

ptotah
11 minutes ago
2 min read

What do you need to know before buying a restaurant or bar? It’s easy to get caught up in the excitement of the deal, but what you don’t know can lead to expensive mistakes down the road. In this episode, we’re covering our top five critical due diligence items that can either make or break your restaurant purchase.

We walk you through the key documents and details that every buyer needs to verify before making that final commitment—from lease agreements to financial statements, equipment lists to staffing. These steps are essential for ensuring you’re making a sound investment and avoiding hidden pitfalls.

As former restaurateurs and seasoned brokers, we’ve seen it all. We highlight real situations from our own experiences where thorough due diligence protected buyers from significant risks, and where missing these steps created serious challenges. Whether you’re an experienced operator or a first-time buyer, this episode provides practical insights to help you navigate the due diligence process with confidence.

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What You’ll Learn from this Episode:

How to thoroughly analyze a restaurant lease for restrictive language and unfavorable terms.
Why cross-referencing multiple financial documents is essential for confirming true profitability.
What to look for when inspecting restaurant equipment and which maintenance records matter most.
How to properly evaluate existing staff and manage payroll transitions during an ownership change.
Why seller disclosures protect both parties and which specific items must be included.