I write a magazine column for people who want to buy businesses. I'm trying to determine the average valuation for a profitable chain of specialty coffee stores (i.e. multiple of earnings, multiple of sales, etc.) Does anyone have a good rule of thumb -- i.e. 5X earnings, 50% of revenue, etc.?
Also, from those who are running shops, is now a good or bad time to get into the business (by purchasing existing stores)? Why/why not?
Thank you.
Elaine Grant
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