First define what is actually being sold
A restaurant transaction may include equipment, interiors, deposits, licences, brand rights, recipes, digital listings and an operating team—or only some of them. Record the proposed transaction perimeter before discussing valuation.
Review the premises and lease
- Remaining lease period and renewal rights
- Landlord consent for transfer or a fresh lease
- Rent escalation, lock-in and security deposit
- Permitted use, operating hours and signage rights
- Power load, exhaust, fire access, parking and delivery movement
Test the operating numbers
Review sales by channel, bank and POS reconciliation, aggregator settlements, food and beverage costs, payroll, rent, utilities, taxes and owner adjustments. Compare several periods and understand seasonality rather than relying on one headline monthly figure.
Licences and liabilities
- FSSAI, fire and local operating permissions
- Liquor permissions where applicable
- GST, TDS, labour and vendor exposures
- Pending employee dues or disputes
- Equipment finance, liens and unpaid rentals
Plan the handover before signing
Agree how inventory will be counted, employees communicated with, passwords transferred, vendors settled and customer-facing channels changed. Confidentiality matters, but so does a documented transition plan with responsibilities and dates.
Value comes after verification
A strong location or attractive interior does not by itself establish business value. The price should reflect transferable rights, maintainable earnings, asset condition, remaining lease strength and the investment still required after takeover.