Selling a high-volume coffee shop

[Hanalei]

Hi everyone,

Just wandering if anyone has recommendations concerning how to list for sale a high-volume coffee shop. I would rather market to the the industry than through a local biz broker; we are doing well more than 1.5 m per year in sales, so this business is probably out of reach for someone new to the business.

Thanks in advance for your recommendations.

 

[PinkRose]

Hi everyone,

Just wandering if anyone has recommendations concerning how to list for sale a high-volume coffee shop. I would rather market to the the industry than through a local biz broker; we are doing well more than 1.5 m per year in sales, so this business is probably out of reach for someone new to the business.

Thanks in advance for your recommendations.

We have Forum members who are new to the business as well as those who are very experienced. We also have a high volume of "guests" who explore the Forum every day.

Is there a particular reason why you're selling your coffee shop?

In addition to other avenues that you may explore, you are certainly welcome to post your business for sale here on the Coffee Forum website. If you do, please give us lots of important information, such as location, size, asking price, what's included, etc.

Rose

 

[JohnD18]

There are a lot of factors that determine the value of a business. To come up with a rough price that pertains to your industry, businesses usually calculate an EBITA (Earnings Before Interest Taxes and Amortization): Subtract your expenses from revenues (excluding any interest or tax expenses) without considering any depreciation or amortization, or what you owe/paid on your assets. This basically calculates what your business is worth after all of your obligations are cleared away and gives the buyers a good understanding of your real cash flows while showing how well suited the business is to pay back any debts or interest that the new buyers may incur.

There are then multiples used in different industries that can be applied to this number for a real "down and dirty" estimation of your company's value. Obviously there are dozens of other factors that need to be evaluated both tangible and intangible. You should talk to your accountant.