How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask J.Hazelbaker Your Own Question
J.Hazelbaker
J.Hazelbaker, Attorney
Category: Business Law
Satisfied Customers: 4385
Experience:  Experienced and trained in the area of business law.
15393114
Type Your Business Law Question Here...
J.Hazelbaker is online now
A new question is answered every 9 seconds

a) Can you advise, how do business sale agents/business buyers

This answer was rated:

a) Can you advise, how do business sale agents/business buyers calculate the sale value of a retail store/restaurant?

I run a self-serve frozen yogurt store in California with following numbers: Gross Annual Sales $500K, Total Costs $320K ($120 products used, $100K rents + misc, $100K employee wages), annual net profit $180K.

Store build-out, inventory and equipment cost is $250K. Store needs minimal involvement by owner (less than 10 hours/week); mostly managed by employees.

b) Based on above information, what will be fare market value if I want to sell my store?
Chat Conversation Started
J.Hazelbaker :

Hello. Thank you for using JustAnswer.

J.Hazelbaker :

These days, calculations are made using a multiple (2-4 times) EBITDA.

J.Hazelbaker :

EBITDA is Earnings Before Interest Taxes Depreciation and Amortization.

J.Hazelbaker :

Here's a quick link on calculating EBITDAL

J.Hazelbaker :

http://www.ehow.com/how_2310608_calculate-ebitda-cash-flow-statement.html

J.Hazelbaker :

I see that you are still offline. Please let me know, if you have follow-up questions when you log back on.

J.Hazelbaker and other Business Law Specialists are ready to help you
Customer: replied 6 years ago.
Will review this formula today, ask any flowup question and accept. Thanks
Sounds good. Please let me know, if any follow-up questions arise.