Restaurant Analytics dba RMS Commercial Group, LLC EXPERIENCE • Full Service Restaurants • Limited Service Restaurants • Quick Serve Restaurants • Bars and Taverns • Banquet Halls • Bed & Breakfasts VALUATION PURPOSES • Restaurant Feasibility Studies • Site Analytics • Property Tax Appeals • Estate Appraisals • Financing • Litigation Support • Partnership Buyouts VALUATION PREMISES • Going Concern Appraisals • Excess Earnings Method (EEM) • Business Enterprise Value Appraisals (Business Only) • Real Estate Only Appraisals • Equipment & Furniture Only Appraisals KEY CONCEPTS The business associated with a restaurant cannot usually be moved to another location and, simply stated, business value exists only to the extent that it contributes value beyond the real estate and personal property. Additionally, what is LIKELY to happen to the business beyond the valuation date makes a difference on the current value of that business. Therefore, adequate analysis of site characteristics, a careful review of local demographic considerations as they relate to the type of restaurant and concept, together with a review of competing alternatives within the primary trade area of the restaurant are critical to a reliable appraisal of these properties. RESTAURANT INDUSTRY FOCUS: Restaurants represent complicated appraisal assignments. Over the past 20 years an appraisal technique known as the Excess Earnings Method (EEM) has been recognized as a best practice in their valuation- and for the allocation of value to each of its economic components. The Excess Earnings Method is not a new technique -in fact it was developed in the 1920’s; however, its usefulness and reliability in accurately solving these appraisal problems has emerged among thought leaders in the appraisal industry as the recognized approach for restaurants and other special purpose properties that operate as going concerns.