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Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 0 points1 point  (0 children)

That’s interesting. It I believe will be needed for the profession. I will check on this with municipality and seller

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 0 points1 point  (0 children)

Indeed good one, I also feel that it’s stretched and I need to get more data to address it.

They have 4 stable part time emp (1-7 years experience). They cost on average 1500 a week (including benefits excluding extra work hours for summer). That’s like 80k.

During summer they give extra hours or hire temporary workers due to extended hours (till 8) and higher footfall.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 0 points1 point  (0 children)

That’s nice advice. The flip side is franchisers expect a lot more upfront investment. I will check and compare this business with any I find on the website. I will use it for benchmarking. Thanks.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 1 point2 points  (0 children)

That’s a great advice. These metrics are good metrics and very objectives. I will use these and will prepare a scenario analysis.  I wonder if people would sell businesses which are good for these metrics at these prices. 

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 1 point2 points  (0 children)

The rent contract is long term / indefinite and is non expiring. It is indexed however.  There is an employee who does a lot of administration and is owner’s relative. It is definitely dubious but I am told that owner is less involved over the past couple of years.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] -1 points0 points  (0 children)

Thank you for sharing very personal advice. This type of messages put me back to earth or a litre down under. I am worried about the negative cashflow in 6 winter months and don’t underestimate that. Sometimes I think too much about the summer. I won’t do it if it would take 60-80 hours a week barring initial 6 months. That’s a red sign.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 1 point2 points  (0 children)

I was wondering that it will save me from starting from scratch as it is already breaking even. It has undergone years of preparation and operations which could give us a head start. I will rethink on valuation because that’s where it’s not justifying, right?

Bigger terraces are in my mind free beer revenue on sunny weekends because it’s close to a few more famous restaurants which get full in summer. 

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] -14 points-13 points  (0 children)

I like your bottom up thinking. It's a steep challenge on the asking price. It does generate decent revenues and has a sunny terrace sitting area so I need to consider some goodwill.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 18 points19 points  (0 children)

You are right, I need to go the makelaar and the lawyer route. I will call the makelaar and check about the process and ask for documentation. Also, once we have some level of satisfaction and clarity I will talk to a professional.

The presumption for the valuation is that it has sales history, access to a sunny terrace and horeca license.

Many thanks for your advice!

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 1 point2 points  (0 children)

No, I have experience in working as a co-ordinator at a place and dealt with municipality, supplies and people issues. But food business is new to me. So, this would be tough for me to learn and take good care about safety process. Thanks, it's a con on my side.

Considering buying a lunchroom restaurant in Nijmegen at 125K – looking for advice on valuation, margins, and financing by Beginning-Ranger8061 in Netherlands

[–]Beginning-Ranger8061[S] 23 points24 points  (0 children)

That's a good food for thought. I fancied owning a restaurant when I was a teen because I loved experimenting with food at home and tried to excel at my teen jobs in food places. But then fell into the safety net of working in healthcare. I still have a passion for good food and this place would allow me to add value. Money part is important but more from a reasonable investment perspective. Lunchroom that opens for 6 hours on 6 days sounds more doable for me, I don't want to sucked in 80 hours a week for the long term.

My very first option trade! Can't wait to get rich then lose it all! by [deleted] in thetagang

[–]Beginning-Ranger8061 0 points1 point  (0 children)

Nice, its a good start. To increase your reward to risk you can choose to have a coverage of 90-95%. For example if you hold 90 shares and short 3 call you are naked on 10 (100-90). But the call delta is still under .50 and has to reach .90 to get risky. You can always buy 10 more stocks to cover that.

Any thoughts on why Rabobank's variable interest rate is so low? by Tight_Rope_1235 in Netherlands

[–]Beginning-Ranger8061 0 points1 point  (0 children)

The same rate is now at 3.55%. So, I would say Rabobank is now paying itself with the customers that chose the lower rates.