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Stay appraised of all the latest business considerations in the jewelry industry! The report explains how jewelry stores operate, the nature of their revenue streams, value drivers, the industry environment, the risks involved, and other key factors.
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Restaurant Valuation: Industry Segments, Trends, and the Impact of Real Property
Restaurants are one of the most prevalent business types in the U.S., with recent counts at over 600,000 of various types. Due to intensive competition, there is a high failure rate. There is also substantial activity in the sale of restaurants, which creates a need for business valuation work, whether for SBA financing or for a buyer or seller. Business appraisers are challenged to account for industry risk in assigning an appropriate discount rate. Franz ...
New York Court Awards Lost Corporate Opportunity and Punitive Damages in Restaurant-Related Case
In a case of disputes among the owners of an Irish soccer bar in New York City, the court awarded economic damages and punitive damages after the controlling owners took proceeds of a lease buyout of the bar’s prior location to establish a new identical bar in a new location while cutting out the minority owners from the new bar. Using assets of the old corporation and thereby misappropriating a corporate opportunity of the old corporation, they started a new identical bar (including the name) in a new location in a corporation the control owners set up.
Can a Restaurant Have Personal Goodwill?
State appellate court finds “professional license goodwill” exception, which treats personal goodwill as professional spouse’s separate property, applies to “unique,” successful restaurant and directs trial court to determine how much of the business’s go ...
Shining a Spotlight on Nightclub Valuation
Get ready to jump the line with this lesson on valuing bars and nightclubs with Jason Pierce and Lynton Kotzin. The entertainment venue industry is nuanced, and the pandemic changed the approach for these valuations. Hear specific examples of specialized issues, including deconstructing the revenue streams, matching the risk to the business model, properly applying transaction multiples and other benchmarks, and utilizing lessons learned from court cases. Valuation experts, financial analysts, legal counsel, industry practitioners ...
Reasonable Compensation Is Focus of Restaurant Value in Shareholder Litigation
Unanimous agreement among three appraisers persuades court to adopt their fair market value for a new restaurant, including deductions for reasonable compensation and rejection of DCF approach.
Defendants’ Force Majeure Defense Related to Hurricane Devastation Does Not Excuse Breach of Contract
In rent payment dispute, court rejects defendant restaurant’s force majeure claim that devastating hurricane was act of God that interfered with restaurant’s use of property and excused performance where lease did not contain force majeure provision and rent payments stopped before storm.
Valuation Confirms Salability of ‘Unique’ Restaurant’s Goodwill
State high court rejects per se extension of personal goodwill concept to nonprofessional businesses and finds in case at issue restaurant’s valuation indicates goodwill is marketable and thus corporate and subject to marital distribution.
Study uncovers souring restaurant chain valuation multiples
A recently published study by Restaurant Research, LLC highlights a disturbing trend in the restaurant industry.
Fifty percent of high street retailers could fail by August, say Alvarez & Marsal
Business valuers have stood their corners against changes in valuation methods based on economic crises.
Restaurant brand value multiples keyed to price positioning
When eating out, how important is the restaurant brand?
When market data are volatile, the best alternative is a more rigorous DCF
Quarterly economic indicators are barely sufficient for business valuers now.
The Dynamics of Restaurant Business Valuation
Spring 1997 Volume 16, Issue 1 pp. 14-21 ...
‘Dueling Methodologies’ Lead to Dueling Daubert Motions in Restaurant Case
Court denies dueling Daubert motions based on expert methodologies for pricing restaurant chicken sales.
Restaurant values not just a matter of a simple multiple
The opportunity to perform restaurant valuations continues to be abundant, especially in the current economy, but as the Chick-Fil-A case makes clear—restaurant valuations are not always fast or easy.
In COVID-19 Business Interruption Case, Court Grants Defendant’s Motion to Dismiss Plaintiff’s Claim for COVID-19-Related Losses
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court dismisses plaintiff’s (a restaurant chain owner/operator) claims against insurance company; plaintiffs did not incur (nor did it assert) physical damages to premises as required by the terms of the insurance policy.
Court Says Restaurants Fail to Meet Requirements for COVID-19-Related Business Interruption Coverage
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Successful Restaurant Lost Profits Analysis Turns on Comprehensive Research
Comprehensive research and analysis lend credibility to financial expert’s calculations for over $8 million lost profits and lost goodwill for restaurant.
BV and MAI Appraiser Go Head-to-Head on Restaurant Discount Rate
Federal district court prefers discount rate for restaurant lost future rents based on industry data and research.
Restaurant Value in Divorce Relies on Mere 2x Multiple of Average Annual EBITDA
Court finds that 2x EBITDA multiple is not too low for restaurant valuation, due to 2008 economic downturn and long hours by husband, a solo proprietor.
Missing an Expert: A Divorce Court Ignores Income From Restaurant Business
Trial court (divorce) commits reversible error by valuing only the hard assets of a restaurant and ignoring evidence of its substantial annual income and consistent profits.
Trial Court’s Denial of Permanent Injunctive Relief for Irreparable Harm Is Upheld
The case originated at trial court on issues of the buyout of a deceased member’s interest in an LLC restaurant. Among the issues was the use of the LLC’s recipes by the acquirer of the deceased’s interest in violation of the operating agreement. The two remaining LLC members claimed the use of the LLC’s recipes in other restaurants irreparably harmed them. However, the remaining members did not seek, nor did they prove, any damages resulting from the use of the recipes. The appellate court affirmed the trial court’s denial of a permanent injunction against the use of the recipes.
Valuing Restaurants: A Case Study
Restaurants often feature a unique blend of familiar valuation challenges. In this webinar, featuring a case study covering the valuation of a fast-food restaurant concept, Lynton Kotzin addresses the unique nuances and considerations appraisers must consider when valuing a restaurant.
Restaurant valuations give ‘food for thought’
Restaurant valuations have long been the “bread and butter” of many appraisers, offering a smorgasbord of data and opportunities to consider a rich assortment of inputs and assumptions ...
Court Rejects Plaintiffs’ Argument That Policy Covered Loss of Full Use of Premises Due to COVID-19-Related Shutdowns and Grants Defendant’s Motion to Dismiss
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted defendant insurer’s motion to dismiss the plaintiffs’ claims. The court found the plaintiffs, which operated restaurant and bar facilities in Ohio but had to suspend operations because of the pandemic, did not meet the precondition of “direct physical loss of or damage to” the covered property requirement. Further, the microorganism exclusion precluded coverage of losses.
Valuing Full-Service Restaurants
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 ...