Mobile Catering Business - How To Value and What To Pay For A Food Van Business

Mobile Catering Business - How To Value and What To Pay For A Food Van Business

by Alexa

How do you come to the price of what to pay for a mobile catering van business, sited and taking £500 a week. The van is quite old but the business has low overheads.The owner does not want to continue anymore because he has has lost interest in the business.

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Mobile Catering Business - How To Value and What To Pay For A Food Van Business

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Jun 29, 2010
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What To Pay For A Mobile Catering Business
by: David

For a rough idea of what you should pay for the mobile catering business try and work out how much is paid in rent, gas, stock etc for the month

A rough calculation might be the following:
Say for each month the business makes £2000 or £500 x 4 weeks =£2000
Minus the outgoings such as rent, gas, stock etc which comes to £1000 per month
This will tell you that the business is making a profit of £1000 per month.

Multiply this amount by 3-4 which would value the business at £3-4000 pounds. This is of course a rough guide. If the location is good, and there is potential for you to increase your earnings over time then offer more money.

Make sure the business has permission to be situated for the long term at the present location by speaking with the local council. Also confirm for yourself what the business is actually earning this amount by spending a week with the business owner. This will give you a very clear indication of how the business is performing and if it's worth you investing you hard earned money.

Hope this helps, and let me know how it goes.
Best of luck
David
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