What exactly do you pay for?


New member
Oct 22, 2009
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I am looking to purchase a coffee shop in an excellent location with a loyal base and a site for tourism. It is also located in a book store. The revenue is around 215k and the net is around 60k. This is a very small place with enough room for a sink, a large refrigerator and a small tabletop oven in the back. The owner is on lease. I know there are a many more factors in determining a price but any estimates would be great. I had a former business teacher look at it and she said she would not pay over 10k for it. Does this seem right; I was surprised at her low estimation. I was reading somewhere here that is 40-60 percent of the revenue???

Ultimately what goes into the price of a successful existing coffee shop?