I've had the privilege of listing and selling some famous restaurants and bars over the last several years. One of the biggest questions that both buyer and sellers want to know right away is “how much is it worth?” There are two values at play what the owner wants to sell the bar/restaurant for and what its actually worth in the marketplace.

Its such a great honor to work with restaurant and bar owners to sell their business. This video will cover two back of the envelope calculations that restaurant and bar owners can use to value their business. The sellers discretionary earnings approach and the percentage of sales approach.

Currently in the marketplace, I'm seeing restaurants and bars sell for roughly 2.0 to 3.5 times sellers discretionary earnings. Additionally, restaurants and bars are currently selling for roughly 20 to 40% of sales. Neither of the two aforementioned methods are perfect valuation methods, but they should give you a rough idea and starting point for the value of your restaurant or bar.

Let me know if I can help in any way!
John

#Businessbroker #Restaurants #Businessowner #Businessvaluation #bars

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