Accountant's Corner
Conducting a Financial Analysis By Ronald L. Noll, MS, CPA
There are a number of factors to consider when determining the value of a restaurant you may wish to purchase. This month's column covers the financial analysis, another important area to investigate before making the decision to buy a business. Conducting a thorough financial analysis will not only help you compute the goodwill value of the restaurant; it will also provide you with a sense of the profitability potential of the operation and can also aid you in computing the initial cash investment you can afford to put up for the restaurant purchase.
The full version of this article is now available on Restaurant Report's membership site RunningRestaurants.com.
There are a number of factors to consider when determining the value of a restaurant you may wish to purchase. This month's column covers the financial analysis, another important area to investigate before making the decision to buy a business. Conducting a thorough financial analysis will not only help you compute the goodwill value of the restaurant; it will also provide you with a sense of the profitability potential of the operation and can also aid you in computing the initial cash investment you can afford to put up for the restaurant purchase.
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