Calculating value of business

[Summer]

If a business has a turnover of €320,000. How would the leasehold and freehold value of the property be calculated. It is a public house in Spain. Thank you
Summer

 

[setemupjoe]

i was told before its 10 to 15 times the weekly turnover i.e. 5k a week turnover would sell lease for between 50k - 75k. obviously there would have to be a long period left on lease and normal terms conditions etc.free hold would factor in the price of the property without business then add formula above . always offer less first !

 

[Keentoinvest]

I dont think theres any defined answer but it would not be based on turnover but gross profit. A conservative estimate would be 10 times gross profit, a standard estimate could be 20 times i.e myhome.ie was sold for 50mill and had a profit of circa 2mill last year (25 times profit). Normally a certain payment would be paid upfront with the balance based on achieving certain targets.