Much of a restaurant’s value is dependent on its location. When you buy a restaurant, you don’t want to have to move. Keeping the restaurant in that spot is very important. This will be accomplished by a thorough and professional review of the lease. But ensuring customers can continue to access your restaurant is equally […]
Surprising Ways Traffic Patterns Can Influence a Restaurant Purchase Read More »
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
How Financial Source Data Affects Restaurant Purchase Price Read More »
In the third part of “Paying the Right Price,” we looked closely at how to use the SDE and value multipliers together to calculate business value. This was an important step for a business buyer to ensure an accurate purchase price. The final part of this four-part video is going to cover two related topics
Why Down Payment and Debt Service Are Key to Your Business Purchase Read More »
Previously we discussed how to use the P&L Statements and other financial documents to recast the financials and determine the SDE and value multipliers of the business you want to buy. With these numbers in hand, you can now set about double checking the seller’s sale price. In the third part of “Paying the Right
How to Calculate Business Purchase Price with SDE and Value Multipliers Read More »
The Tax Cuts and Jobs Act (TCJA), signed into law nearly a year ago on December 22, 2017, transformed the corporate tax code. In particular, it significantly changed the way that small businesses depreciate assets by expanding both Section 179 deductions and first-year bonus depreciation. With these two methods, businesses can elect to write off
Two Huge Tax Breaks for Business Buyers Read More »
