Buying or Selling a Restaurant

Post
donecookn
Junior Burger
2005/05/29 23:16:18
Is there a formula for estimating the worth of a Restaurant?
I am not buying or selling just trying to settle a arguement on how it is all figured out. I say gross sales over 5 or 10 years added together then divided by number of years.
bassrocker4u2
Double Cheeseburger
RE: Buying or Selling a Restaurant 2005/05/30 09:57:56
there are three different formulas that i used to determine the worth of my place before i listed it for sale. i then used the middle numbers. the most practical is that one year gross sales= sell price. there are many factors that come into play such as real estate, leases, age of equipment, condition of building and equipment, and tons of other things. ultimately, a business is worth whatever someone is willing to pay for it, same as a house. my restaurant is for sell, if anyone is interested......
donecookn
Junior Burger
RE: Buying or Selling a Restaurant 2005/05/30 22:22:30
Thanks so much for helping me out. Ok I lost the bet but ......
lol
2010Vision
Junior Burger
RE: Buying or Selling a Restaurant 2005/05/31 14:11:02
Net Sale (Monthly) = Gross Sale - Sale Tax * 3 = Price

quote:
Originally posted by donecookn

Thanks so much for helping me out. Ok I lost the bet but ......
lol