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How much is that business worth?

 
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ryanbeck

posts: 6

Dec 09, 2006 7:43 PM ET    Quote  Report Abuse
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I`m looking to buy an established restaurant.  In my area the prices reflect about 3-5 years profits, so a business that profits $50,000 per year are sold for around $135-150k.  I don`t really know how to value a business like this.  Is 3-5 years profit a normal range for an established business?  Thanks a lot.
RaiseCapital01

posts: 139

Dec 09, 2006 11:26 PM ET    Quote  Report Abuse
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I would get a mentor from SCORE to look at the financials. You may find a mentor that actually was a executive of a restaurant chain to give you some better advice. It seems to be too low of a purchase I think for a restaurant that is profitable. Why not sell it for $300k or $500k?

smoots

posts: 9

Dec 10, 2006 8:56 AM ET    Quote  Report Abuse
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ryanbeck,

RaiseCapital01 is right a SCORE mentor is a great person to have just have period. Other than that he is a quick worth calculator to play around with. It`s based on EDITDA.




S. Smoot
Totus Company


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Shaun M. Smoot, Principal, Totus Company Atlanta Technology Firm
sallya121

posts: 64

Nov 18, 2011 9:48 PM ET    Quote  Report Abuse
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You need investigate first .The value of restaurant due to many condition



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Estella

posts: 139

Dec 08, 2011 8:10 AM ET    Quote  Report Abuse
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You need to do a lot of study regarding your area and it's rates, because it's really not that easy to set-up a business without knowing the rules and mentoring the right concept.

trade forex | review broker forex



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CookiesSweet

posts: 3

Dec 13, 2011 8:03 AM ET    Quote  Report Abuse
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GTOptions

posts: 74

Jun 20, 2012 3:14 AM ET    Quote  Report Abuse
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Every business has it's own requirements and importance which cannot be calculated with the profit or earnings. It's all depends on your interest that what can you do with that business in future.

 

Private Banking



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