What It’s Worth: Valuing Limited-Service Restaurants
August 2024 PDF (187 pages)
BVR (editor)
Business Valuation Resources, LLC
Serve up a feast of knowledge and master the most pressing business considerations in the restaurant industry. This report examines how limited-service restaurants operate, current industry trends, valuation approaches, special situations unique to the industry and other critical factors.
What It’s Worth: Valuing Limited-Service Restaurants is the latest in BVR's series of special reports and is an ideal and timely resource for anyone looking for insight into what drives value in the limited-service restaurant industry. This report takes a comprehensive look at major court cases, and includes a section on special documents to request and questions to ask that can inform any stakeholder’s thinking.
This report makes use of actual market comps from the DealStats transaction database alongside rules of thumb taken from the latest installment of the Business Reference Guide to ensure that you have the most accurate data available.
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- Explore industry and company specific risks
- Understand the seven key elements of franchise operation
- Base your valuation conclusions on case studies derived from real-world experience
- Get the most out of this report by taking advantage of BVResearch Pro's Research and Data Assistant (RADA) to uncover key insights and streamline your analysis of this report
- Gain an understanding of the excess earning method as it relates to the limited service restaurant segment
- Reference credible data points drawn from reliable sources such as: IBISWorld, National Restaurant Association, Restaurant Research LLC, DealStats, The Business Reference Guide, BVResearch Pro, chainrestaurantdata.com, Vertical IQ, and more
- Rely on insights from trusted valuators Pasquale Rafanelli, Franz Ross, Edward Moran, Ashok Abbott, and Timothy Voit
Introduction
Section I: Industry Overview
1. Sector Structure
2. Industry and Company Risks
3. Current Industry Trends
4. Sample Industry Outlook Section for a Valuation Report
Section II: Practicioner Perspectives
5. Understanding the Limited-Service Restaurant Segment
6. Key Trends to Consider When Valuing a Limited-Service Restaurant
7. Financial Analysis and Valuation Approaches
8. Case Study: Verifying the Financials of a Take-Out Restaurant
Section III: Special Situations
9. Seven Key Elements to Examine in a Restaurant Franchise Operation
10. Trademark Comparable Data: Limited-Service Restaurants
11. Excess Earnings Method Variation Carves Up a Restaurant’s Value
12. Pitfall of Using Rule of Thumb Data for Valuing Restaurants
13. How to Analyze a Restaurant’s Passive Appreciation for Divorce Purposes
Section IV: Analyses of Key Court Cases
14. Analyses of Key Court Cases in Limited Service Restaurant Industry Valuation
Bertuca v. Bertuca
Blackstone v. Blackstone
Bougie v. Garth-Niggeman
Brave v. Brave (I)
Brave v. Brave (II)
Burger King Corporation v. C. R. Weaver; M-W-M, Inc.
Chick-Fil-A v. CFT Development, LLC
City of Baton Rouge v. Jay’s Donuts, Inc.
Davidson v. Davidson (II)
In re Estate of Bittner (I)
In re Estate of Bittner (II)
Estate of Furman v. Commissioner
Freihage v. Freihage
Inzer v. Inzer
Kapadia v. Kapadia
Lymburner v. Axhelm
In re Magna Cum Latte, Inc.
McDonald’s Corp., et al. v. Brentwood Center, Ltd.
Navigato v. SJ Restaurants, LLC
Nesser v. Boston Restaurants
In re Panera Bread Company
Parlour Enterprises Inc. v. The Kirin Group, Inc.
Ruggiero v. Ruggiero
Spencer Franchise Servs. of Ga. v. WOW Café & Wingery Franchising Account, LLC
In re the Marriage of Hollow
Section V: Benchmarking Data and Research
15. Summary Valuation Data and Multiples From DealStats
16. Rules of Thumb From the Business Reference Guide
17. Industry Research, Resources, Terms, and Definitions
Section VI: Appendices
Appendix. Special Documents to Request and Questions to Ask
