Reconcile the sales story to the records
Compare point-of-sale reports, delivery-platform settlements, bank receipts and accounts for consistent periods. Explain refunds, discounts and the difference between gross platform sales and amounts received after fees. A strong week should not be annualised without considering the broader trading pattern.
Analyse demand by service period or channel where the data permits. Breakfast, evening service, catering and delivery can carry different labour requirements and margins. More sales do not always mean proportionately more earnings, particularly where commissions or staffing costs rise.
Count the hours needed to keep the doors open
Owners may cover preparation, service, ordering and administration without drawing a commercial wage for every role. Record the hours and duties, then consider the operating model assumed in the valuation. An incoming owner working full time asks a different earnings question from an investor employing a manager.
Review rosters, payroll and recurring ingredient costs alongside revenue. The cost base must support the same opening hours and service level used in the earnings assessment. Proposed improvements should be identified as assumptions rather than treated as profits already achieved.
The premises and equipment affect continuity
The lease term, renewal arrangements, occupancy cost and transfer provisions can influence the business’s ability to continue trading as assumed. Provide the full lease and amendments; legal interpretation and landlord consent issues require the appropriate advice.
Also identify equipment condition, ownership, finance and expected replacement expenditure. A kitchen operating on heavily used equipment may face cash costs not visible in a single EBITDA figure. Distinguish the operating value from property ownership and from any assets explicitly excluded from a sale.
Prepare evidence across a complete trading cycle
For a franchise, supply the franchise agreement and associated fees as well. The brand relationship and contractual obligations need to be understood before comparing it with an independently operated venue.
Before we begin
Your industry information checklist
- Financial statements and monthly trading
- POS and delivery-platform reconciliations
- Payroll, rosters and owner duties
- Lease and franchise agreement if applicable
- Equipment, stock and finance records
We confirm the documents needed once the purpose and scope are clear. For the common starting documents, see our valuation preparation guide.
General business valuation guidance. Service suitability, specialist input and fee are assessed for the individual matter.