The evaluation of bars, restaurants and nightclubs must consider the specific characteristics of each business and the methods commonly used are the Discounted Cash Flow, Market Approach or Multiples.
The main characteristics that influence the value of these businesses are the size, location, type and products offered.
Some items severely affect economic results, such as:
- excess of products offered (food and beverages);
- bad management;
- little team training;
- neglect design and functionality;
- underestimating the strength of marketing;
- little working capital.
In addition to these factors, the owner(s) must be aware of the risks of violence, market instability and the high possibility of having only 2 or 3 profitable nights per week.
It is important to note that this business segment depends on legal licenses for health, construction, signage, alcoholic beverages, food, etc… .
Mynarski knows and masters all the methodologies and analyzes necessary for the valuation of this business segment.