If the owner works 70 hours a week, don’t assume you’re buying an investment.
You may be buying a 70-hour-a-week job.
Michael Shea
10 Things to Look for When Buying a Small Business in Florida
But you need enough information to understand how the business actually makes money.
Tax returns, P&Ls, bank statements, POS records and merchant processing can all tell part of the story.
Due Diligence on Main Street: What Happens When the Taxes Don’t Tell the Whole Story?
I’ve sold hundreds of businesses over the years, and one of the biggest misconceptions I see is that due diligence is simply about finding something wrong.
That’s not the purpose.
Good due diligence should give the buyer confidence.
The Restaurant Due Diligence Reality Check: 4 Ways Serious Buyers Verify Revenue Before Closing
No tax return, POS report, or seller interview would have revealed that discrepancy as clearly as physically observing the operation.
The old saying applies perfectly here:
Trust, but verify.
What Is the Best Time to Sell a Restaurant in Florida?
The valuation guide explains that restaurant valuation isn’t determined by sales volume alone—it is primarily about the cash an owner can extract from operations.