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I need a resource which shows various valuation "rules of thumb" (i.e., multipliers) for a restaurant.
I am looking to get some quick rules of thumb for the restaurant industry so I can have an idea of whether the business is a good deal. In particular, I am interested in what a typical EBITDA multiplier is for a restaurant.
2 Answers
- 1 decade agoFavorite Answer
In looking at their P&L there is one quick way of telling whether the place has continuously made money and will contin ue to do so.
Look at the Gross Profit. This will be your gross revenue minus your raw materials and your "production" labor ( IE cooks, wait staff, busboys, etc)
If that number if not 32% or higher, then you have a business that is selling its goods under priced. I would be happy to review the numbers with you, and I do not charge for this help.....
As for the price of the business, I wouldnt pay more than 3.5 x EBITDA...
- diblyhooLv 41 decade ago
Every state has a Restaurant Association - they have plenty of info and it may be online for your state.
