When buying a restaurant or any other type of business, it’s vital that you find out what financial sources the seller used to calculate the purchase price. Did they use P&L Statements? Tax returns? Are they owner-to-prove or pro forma?
This can come as a surprise to many business buyers because one might assume that a business’ financial statements should all say “the same thing” about a restaurant. However, as you will see in this video, historical restaurant purchase data make clear that the source data significantly affect the overall purchase price for a restaurant.
Ultimately, buyers can be more confident in an investment that is founded on more reliable financial source data.