CASE STUDY: Restaurant, Bar & Lounge Sold in Three Months

When the owner of a popular Georgia lounge needed to sell quickly, EDGE Business Advisors managed a fast, complex sale despite licensing hurdles and limited financial records. With strong POS data and a creative joint venture structure, we kept the business running and closed the deal at 99% of asking price with 70% cash at closing.

Overview

Business Type: Bar & Lounge (with liquor and tobacco sales)
Location: Georgia
Time on Market: Less than three months total
Sale Outcome: Sold for 99% of asking price
Deal Structure: 70% cash upfront, remaining 30% seller-financed

The Seller's Situation

The seller owned a stylish, high-revenue bar and lounge with a loyal customer base and strong online reviews. The business was performing well but had only been open for just over a year, so it had not yet filed a tax return. This made traditional financial validation more challenging for buyers and lenders.

Adding urgency, the seller needed to relocate quickly. Complicating matters further, Georgia does not allow liquor or tobacco licenses to transfer between owners, introducing a potential gap in operations during the licensing process.

Key Challenges

• No tax return available due to business being less than two years old

• Seller needed to relocate quickly

• Liquor and tobacco licenses are non-transferable

• Potential downtime while buyer awaited new license approvals

How EDGE Business Advisors Helped

• Valuation Strategy: Used detailed Point-of-Sale (POS) reports to support the asking price and demonstrate revenue stability

• Marketing & Positioning: Focused on the lounge’s strong customer following, aesthetics, and operational systems

• Buyer Sourcing & Screening: Sourced over 100 potential buyers, generated 69 formal inquiries, vetted 22 serious buyers, and received 3 offers

• Licensing Strategy: Structured a joint venture between buyer and seller to legally keep the lounge open during the buyer’s license application period

• Deal Structuring: Closed the deal at 99% of asking price, with 70% paid in cash and 30% seller-financed.

The Results

• Business was sold in less than 90 days

• Business remained operational with no downtime due to JV structure

• Seller relocated on schedule

• Buyer assumed control of a fully operational, revenue-generating business

Key Takeaways for Business Owners

• A lack of tax returns doesn’t have to derail a sale if strong POS data is available

• Licensing hurdles can be overcome with creative structuring and legal guidance

• Fast, high-value sales are possible with proper positioning and experienced deal management

Thinking About Selling Your Restaurant, Bar or Lounge?

EDGE Business Advisors specializes in helping nightlife and hospitality owners sell successfully, even when the deal has licensing, financing, or timing challenges.

Let’s talk

Phone: 404-940-5748
Web: www.buyselledge.com
Schedule a free consultation today.