Posted by Yoshi Kipper on July 08, 19100 at 02:04:54 :
I am looking into purchasing a what used to be restaurant now catering and (small app. 1200sq. ft actual usuable customer floor space) private event facility business. The business (contents, equipment, receipes, goodwill, etc.) that is not the building (the building is leased). It is located right off of a historical square in downtown of a small up and coming town right outside of Kansas City, MO. My question is: How do you determine a fair price to offer for an exsisting catering business after looking at all of the details? Such as the client list, areements with the leasor(landlord), equipment(appraised value), business expenses (utilities, insurance, rent, no payroll since the current owner has no real employees), profit & loss statements, tax return for the previous year. Have I covered everything?! Getting a business loan is not a problem for her asking price that I have not yet agreed upon, that end has already been covered. The owner has already agreed to stay on for a period of 6 month as sort of a training, transition stage for me and her exsisting clientelle.
I hope I have not left out any details and my question is not too vague. Any help would be much appreciated. Thanks!