Barbeque? Italian? Chinese? Along with a seemingly infinite variety of dining establishments there are an equally large number of complex questions surrounding full-service restaurant valuations. What are the key industry issues? How do full-service restaurants differ from quick service restaurants? What are the value drivers? Join expert Lynton Kotzin, managing partner of Kotzin Valuation Partners, LLC, as he shares his framework to answer these questions and addresses the unique nuances and considerations appraisers must consider when valuing a full-service restaurant.
Program Agenda
Overview of restaurant industry including current conditions and future outlook
Differences between types of restaurants (quick service v. full service) and concept types and why the difference is important to the valuation analysis
Financial analysis and industry benchmarking
Average Unit Volume
Revenue mix
Day parts
Same store sales trends
Gross Margin
EBITDA Margin
Capital Expenditures
Growth trends
Normalization adjustments
Non-recurring and extraordinary items
Owner compensation and perquisites
Rent adjustments
Key value drivers in full-service restaurants
Special issues/considerations in valuing full-service restaurants
Proper application of the market approach
Examples from transaction databases
Income approach considerations
Unique considerations and risk profile
Reasonableness tests
Case study analysis
Learning Objectives
Explain the unique issues to consider when valuing a full service restaurant
Understand normalization adjustments, financial analysis and industry benchmarking nuances in valuing full service restaurants
Review a case study on valuing a full service restaurant
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