Taking over a hospitality business: the checklist before you sign

Every week, new takeovers appear on the Horeca Benelux marketplace: brasseries, cafés, chip shops. A takeover has advantages, such as an existing clientele and a fitted kitchen, but also risks. This checklist helps you ask the right questions.

1. The numbers

Request at least three years of annual accounts and compare them with the till data. Have an accountant with hospitality experience take a look: what is the real gross margin, and how high are the wage costs?

2. The premises and the lease

How long does the commercial lease still run, and can it be transferred? Also check terrace and operating permits, and the condition of extraction, electrics and plumbing.

3. Staff and goodwill

Are you taking over the staff? In Belgium and the Netherlands specific rules apply to a transfer of undertaking. And what is the goodwill really worth if the current chef or owner leaves?

Take your time, talk to neighbours and suppliers, and go and eat there at different times. A good takeover doesn't just feel right on paper, but on a busy Friday night too.✦