In this episode, Kinsey Roberts and Lindsay Lucas break down the key steps for wedding venue owners considering selling their business.
With an increase in inquiries about buying and selling venues, they share practical advice based on real experience.
Key Takeaways:
- Get your financials organized first - Buyers want to see actual profit, not just potential. Have your gross and net revenue clearly documented and ready for scrutiny.
- Prepare for thorough due diligence - Serious buyers will conduct what feels like a "financial cavity search." Be organized with all paperwork, documentation, and proof of income.
- Decide your selling strategy early - Determine if you're selling just the business, just the real estate, or both together. This affects your entire approach and gives you flexibility later.
- Get a professional business valuation - Hire a third-party evaluator with venue or hospitality experience, or start with DIY options like bizequity.com to reduce attorney hours.
- Ensure legal compliance - Review all licenses, permits, zoning requirements, and existing contracts with vendors and employees before listing.
- Manage your expectations - Buyers purchase based on current profit, not future potential. If they're buying for potential, expect a lower price since they'll be doing the work to realize that potential.
- Consider your personal brand - If you've built the venue around founder content and personal branding, start shifting to venue-focused content well before selling, as buyers see no equity in your personal brand.
- Prepare emotionally - Selling is an emotional journey for both parties. Don't take buyer questions personally - they're seeking facts, not criticizing your management.
- Use NDAs properly - Any serious buyer should be willing to sign a non-disclosure agreement. If they won't, they're not serious.
