Serpone of NE Restaurant: Cooperating brokers = profits
January 02, 2014 - Front Section
Last summer a very successful restaurateur made a realistic offer on a $1 million Boston bistro. The offer was turned down and the seller was unmovable from his price and terms. The seller resumed his search. Fortunately we maintained our connection with him.
Two weeks ago, a commercial broker called me and asked, as a restaurant specialist, if I had a buyer for a $10 million restaurant doing $6 million in sales and having a 6% commission. He immediately got my full attention. Upon review of the financials and a tour of the property, it was determined that $10 million was way over priced. The bigger issue was, with 100% capital gain to be dealt with, the value in the deal for both buyer and seller was the structuring of the deal. We now have a $6.5 million deal with seller and buyer in a "win-win" structured program where the seller will be paying minimum taxes and the buyer has a very favorable debt package.
The moral to this story is that "my" buyer, married to the other broker's "property," is now providing hundreds of thousands of dollars in commissions for both of us. However, the best part of this industry is the friendships developed and enhanced over the years.
Merry Christmas and Happy New Year!
Dennis Serpone is president of New England Restaurant Brokers and The National Restaurant Exchange, Wakefield, MA.