Determining the sales value of a restaurant can be a challenge. The owner may have an inflated idea of what the business is worth, while a buyer prefers to pay the minimum value. There are several different methods of determining the value of a business. Calculating the value by two or more methods will give you an idea of fair market value for the business.
Step 1
Obtain the income statement from the seller or work with an accountant to create one. If you are the buyer, verify all information before the actual sale takes place.
Step 2
Estimate the value of the business assets. Include the value of the business property, equipment, supplies and inventory. This number does not take into account the value of intangibles, such as a prime location or goodwill. It also does not consider the return on the investment, but it does serve as a good starting estimate. The actual value may be higher for a well-performing restaurant or lower for restaurants that are not living up to their potential.
Step 3
Determine the "owner's benefits" from the business. Add together the pre-tax profit from the restaurant, the owner's salary, benefits, interest on any loans that will be paid during the sale and depreciation. Subtract an allowance for equipment that will need to be replaced or other additional expenses.
Step 4
Multiply the owner's benefits by an income multiple. Most small restaurants sell for one to three times the owner's benefits. A multiple of one is appropriate whenever business is expected to drop when the owner leaves. Restaurants with a strong customer base and excellent track record deserve the higher multiple.
Step 5
Consider hiring a professional or using a software program to determine the valuation, if your calculations are much higher or lower than you expected.
Tuesday, September 20, 2011
Tuesday, December 23, 2008
Claremont Chinese Restaurant For Sale $180,000
| Business Type: | Food Services |
| Have: | Bar & Chinese Food |
| Sqft: | 4,000 |
Mnthly Rent: $6,300
Property Description: Great Prime Location in Foothill, Claremont. Near by Donald Saving Bank, Sprout Farmer's Market, Medical Center and Claremont College. Restaurant has a nice built out and beautiful modern design bar offers alcoholic drinks & homemade qualify chinese food. It has established clienteles and plenty private parties. Bonus Featurest!! Alcoho's License. Excellent sales of Alcoholic Drinks at nights. Rare opportunity to own one of the trendsetting bar & Chinese Food Restaurant with huge upside potential for an aggressive owner operator. Buyers may change other styles if they want. Rent: $6300/4000 sqft. with 150 seating people. Gross Income: approx $43,000/month.
Monday, October 27, 2008
Claremont Restaurant For Sale $279,900
Business Type: Food Services
Sqft: 2,648
Type of Lse: Nnn
Mnthly Rent: $7,400
Property Description: "KINYA SUSHI & SHABU SHABU" - GREAT BUSINESS OPPORTUNITY! BUSY AND WELL KNOWN RESTAURANT! MONTHLY GROSS INCOME OF $55,000. MONTHLY RENT + NNN = $7400, LEASE HAS 6 YEARS REMAINING + 5 YEAR RENEWAL OPTION.
Sqft: 2,648
Type of Lse: Nnn
Mnthly Rent: $7,400
Property Description: "KINYA SUSHI & SHABU SHABU" - GREAT BUSINESS OPPORTUNITY! BUSY AND WELL KNOWN RESTAURANT! MONTHLY GROSS INCOME OF $55,000. MONTHLY RENT + NNN = $7400, LEASE HAS 6 YEARS REMAINING + 5 YEAR RENEWAL OPTION.
Wednesday, September 3, 2008
Diamond Bar Restaurant For Sale $100,000
Business Type: Food Services
Mnthly Rent: $1,918
TotalAnn Exp: $87,150
Property Description: A less than 1 year old Resturant with new equipment, good area and good traffic. located in a very busy center with banks, resturants, offices, and mutiple businesses. the resturant has a very attractive decoration and it seats upto 35 people . it has excellent rent and lease term . the resturant has an ABSANTEE OWNER(owner doesnot work at location)
Mnthly Rent: $1,918
TotalAnn Exp: $87,150
Property Description: A less than 1 year old Resturant with new equipment, good area and good traffic. located in a very busy center with banks, resturants, offices, and mutiple businesses. the resturant has a very attractive decoration and it seats upto 35 people . it has excellent rent and lease term . the resturant has an ABSANTEE OWNER(owner doesnot work at location)
Balwin Park Restaurant For Sale $295,000
| Business Type: | Food Services |
| Have: | Family restaurant |
| Sqft: | 1,800 |
Mnthly Rent: $2,700
Property Description: Very busy location, near 605 freeway. located in a shopping center, high trafic count. beer and wine license. owner will carry part of the sale price.
Tuesday, September 2, 2008
Hacienda Heights Restaurant For Sale $98,000
Business Type: Food Services
Sqft: 970
Mnthly Rent: $2,960
Property Description: boba tea hut selling fast food&drink,located on the corner of alberson shopping center,it is highly exposure just facing colima,owner own the business for 6 yrs want to retire,this is a good busniess to own.
Sqft: 970
Mnthly Rent: $2,960
Property Description: boba tea hut selling fast food&drink,located on the corner of alberson shopping center,it is highly exposure just facing colima,owner own the business for 6 yrs want to retire,this is a good busniess to own.
Balwin Park Restaurant For Sale $79,900
Business Type: Food Services
Sqft: 1,600
Mnthly Rent: $2,759
Lse Deposit: $5,000
Property Description: TWO BUSINESSES FOR THE PRICE OF ONE, ONE OF THESE RESTAURANTS HAS BEEN ESTABLISHED FOR THE LAST 15 YEARS, THE SECOND IS A ICE CREAM PLACE, THERE SELLING RASPADOS AND CHAMONGOS AND A VARIETY OF KINDS OF MEXICAN ICE CREAMS. PLEASE CALL ME TO VIEW.
Sqft: 1,600
Mnthly Rent: $2,759
Lse Deposit: $5,000
Property Description: TWO BUSINESSES FOR THE PRICE OF ONE, ONE OF THESE RESTAURANTS HAS BEEN ESTABLISHED FOR THE LAST 15 YEARS, THE SECOND IS A ICE CREAM PLACE, THERE SELLING RASPADOS AND CHAMONGOS AND A VARIETY OF KINDS OF MEXICAN ICE CREAMS. PLEASE CALL ME TO VIEW.
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