How much can you sell a successful restaurant for?
What is the best way to sell a restaurant?
- Understand How Much Your Restaurant is Worth. Buyers and investors will want an in-depth rundown of financials, whether those are positive or negative.
- Selling Off a Liquor License.
- Use a Restaurant Real Estate Specialist.
- Vamp Up Curb Appeal.
- Sell as a Commodity.
Is it hard to sell a restaurant?
Selling a restaurant can be a complex process. Selling a restaurant can be a challenging and time-consuming process. Often the most difficult part of the sale comes with managing emotions as the owner and approaching the sale objectively.10 Dec 2020
How much should I sell my restaurant for?
Restaurant investors and owners will aim to sell their restaurant for 25-40% of their yearly operating income. For example, if the business is making $1 million in sales a year, they would decide a sales price, but it would be around $250,000-$400,000.
Is now a good time to sell a restaurant?
Now is the best time to sell your food and beverage business. Buyers have cash but soon there'll be a lot more sellers than buyers as the economy recovers.1 May 2020
How do you value a restaurant for sale?
On average, restaurant owners look to sell at anywhere from 25% to 40% of their yearly operating income. To estimate the likely cost of buying a restaurant, determine the restaurant's seller's discretionary earnings (SDE), which is basically net income, and multiply the SDE by the restaurant's industry multiples.
How can I sell my restaurant fast?
- Compete With Other Sellers for Their Money.
- Be a Proactive Seller.
- Pursue Multiple Buyers.
- Don't Expect Buyers to Pay for Your Restaurant's “Potential”
- Offer Seller Financing.
- Keep Your Selling Intentions a Secret for as Long as Possible.
How do you calculate the value of a restaurant?
Cost-to-Build Valuation This valuation is calculated by taking the actual cost to build based on a builders cost per square foot, multiplied by the total square footage of the restaurant, and then discount the total by a percentage, which typically ranges from 40%-60%.19 Jul 2019
How many times Ebitda is a restaurant worth?
The rule of thumb is that a small independent restaurant may be worth 3x 4x EBITDA while a multi-unit restaurant chain may be worth 6x EBITDA or more. In example, for an average restaurant that does $1M in sales and has a 10% EBITDA margin ($100,000 of EBITDA), the value would range from $300k $600k+ per location.5 Apr 2019