What buyers focus on in California restaurant & hospitality transactions
These are the items that consistently come up in due diligence and negotiation for restaurant & hospitality businesses in California. Understanding them before going to market gives you time to address them.
California's ABC liquor licensing process is one of the most complex in the country; start 6 months early
Labor law compliance (tip pooling, break violations, overtime) is the most common source of post-close litigation
San Francisco and LA restaurant buyers are among the most sophisticated in the world; documentation must be perfect
California minimum wage is among the highest nationally and labor normalization is the first thing buyers model
The preparation timeline that matters
Most owners underestimate how long it takes to prepare a restaurant & hospitality business for sale. The items in the list above are not things you can address in the 30 days before you go to market. They require months of advance work. Owners who start early (typically 12 to 24 months before their target sale date) consistently achieve better terms than those who rush.
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