EBITDA multiples for coffee shops

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July 01, 2022

by a professional in Nashville, TN, USA

I've got a client putting together a valuation for 4 coffee shops (with light food) all under the same brand within a major metro area. Adj EBITDA is approximately $1.2MM and has been consistently growing over the past several years. Does anyone have an understanding of a multiple range for something like this?

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Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Warren Buffett says, “People who use EBITDA are either trying to con you or they’re conning themselves.” Charlie Munger, Buffett’s right-hand man, goes even further: “I think that, every time you see the word EBITDA, you should substitute the word ‘bullshit’" Strong words from some of the most successful businessmen on the planet.
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Reply by a searcher
from The University of Chicago in Chicago, IL, USA
Hi I realize this is an older post but I have a colleague with a coffee shop opportunity in hand. Is anyone in this thread able to connect regarding their process of acquiring a coffee shop or similar? Curious about some of the diligence process and timing of engaging service providers.
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