Income X multiples  property value Getty Images

Income X multiples = property value.

What's your restaurant worth?

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What’s my business worth? It's a question any restaurant owner asks—and why not? Everyone wants to know how much his or her home is worth, right?

Unlike real estate, a business is worth the income it generates multiplied by a factor of usually two to three times the income.

Two parts determine the value of a business: income and multiple.


Income: In small business, the important number is working owner cash

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