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Accountant's Corner
Conducting a Financial Analysis
By Ronald L. Noll, MS, CPA

Ron Noll 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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