Valuing a cafe or restaurant
Coffee and visiting a local cafe are part of many Australians’ daily routine. Australians are known for their love of quality coffee and this is reflected by the number of cafe’s across Australia.
At Rushmore Group we provide cafe and restaurant valuation reports for a range of purposes including:
- Purchase or sale of the Business.
- Taxation purposes; and
- Shareholder / partnership disputes.
There is a sizeable market for buying or selling a cafe or restaurants.
Many operators of cafes and restaurants internally measure their weekly takings and in our experience many acquisitions are undertaken on the basis of a multiple of weekly takings (or weekly revenue).
The advantage of the use of a capitalisation of revenue methodology is that the expenses of the Business do not require normalisation. Normalisation adjustments are typically seen with private expenditure, non-operational expenditure, motor vehicle expenditure and the salaries and wages of the Directors of the entity.
Cafe’s and restaurants can also be valued using a more traditional capitalisation of future maintainable earnings (FME) methodology.
More information
We provide cafe and restaurant valuation reports for clients across Australia. If you would like further information in relation to a cafe or restaurant valuation, then please do not hesitate to contact us.