Sample Exit Valuation - The Coastal Pour (Illustrative Venue)

Type

Bar

110 seats

Location

Burleigh Heads, QLD

6 years trading

TTM Revenue

$1,850,000

Trend: Growing

Lease

8 years

Remaining

74.0%

Prime cost (Concerning)

$324,200

Seller's Discretionary Earnings

The Coastal Pour generates $1,850,000 net revenue across the trailing twelve months. SDE lands at $324,200 after owner add-backs. The valuation range below reflects the adjusted multiple of 3.8x applied to verified financials. Read each section before deciding next moves.

Critical Prime cost at 74.0%. Benchmark is 60-65%. Rated Concerning. Every 5pt reduction translates directly to SDE and lifts the adjusted multiple.

SDE Calculation

Net Revenue (TTM, ex-GST)	$1,850,000
Less: Cost of Goods Sold	-$888,000
Less: Labour (loaded)	-$481,000
Less: Rent & Outgoings	-$144,000
Less: Other Operating Expenses	-$178,000
Net Profit	$159,000
Owner Add-Backs
Owner Salary / Drawings	+$95,000
Owner Vehicle (personal)	+$9,600
Owner Phone + Internet (personal)	+$2,400
Depreciation (non-cash)	+$28,000
One-off Legal (lease renewal)	+$7,200
Owner Travel (industry conference)	+$4,800
Owner Health Insurance (personal)	+$6,200
Family Member Above-Market Wages	+$12,000
Seller's Discretionary Earnings	$324,200

Prime Cost (COGS + Labour) 74.0%

0% Benchmark 65% 100%

Multiple Adjustment

Six factors adjust the base SDE multiple up or down. Each is a defensible buyer-side concern.

Base (Bar)	2.5-4.0x
Revenue Trend Growing	+0.3x
Lease Security 8 years	+0.2x
Owner Independence 20 hrs/wk	+0.0x
Prime Cost 74.0% (Concerning)	-0.4x
Staff Stability $84,091/staff	+0.1x
Years Trading 6 years	+0.1x
Business Type Bar	+0.0x
Adjusted Multiple	3.8x

Indicative Valuation Range

Conservative

$907,760

2.8x SDE

Expected

$1,215,750

3.8x SDE

Optimistic

$1,523,740

4.7x SDE

Exit Readiness

Owner Independence 7/10

Financial Clarity 10/10

Team Stability 7/10

Systems & SOPs 8/10

Lease Security 8/10

Brand Strength 7/10

Revenue Quality 9/10

Customer Base 8/10

Physical Condition 8/10

Growth Runway 8/10

Total 80/100 Exit Ready

Value Acceleration

Reduce Prime Cost

Prime cost at 74.0% vs 65.0% industry good. Realistic 6-12 month improvement: 3-5pp via supplier renegotiation, menu engineering, and roster discipline.

Achievable savings: ~$92,500/yr. Multiple lift +0.2-0.4x.

Clean Up Financials

SDE includes $95,000 owner salary plus $70,200 in personal-expense add-backs ($165,200 combined). Reduce personal expenses run through the business 12+ months before sale. Buyers' accountants scrutinise every add-back.

Cleaner books increase buyer confidence and reduce negotiation friction

Get a Pre-Sale Business Assessment

Engage a hospitality broker or advisor 6-12 months before listing. They will identify value gaps a calculator cannot see (fitout condition, liquor licence, IP, customer data quality).

Professional preparation typically adds 15-25% to final sale price

Buyer Profile

Multi-Site Operator

Existing hospitality group adding a venue to their portfolio. Values systems, staff retention, and synergy with existing sites.

2.5-3.5x SDE

Private Equity / Investment Group

Financial buyers looking for strong EBITDA and scalability. Value professional management, clean books, and growth runway.

3.5-5.0x SDE / 4-7x EBITDA

Passive Investor

Investor seeking semi-passive income. Strong management team and systems make this attractive. Lower perceived risk.

3.0-4.5x SDE

Property-Linked Buyer

Buyer interested in both the business and the property (or securing the lease). Common for pubs and high-profile bar sites.

3.0-5.0x SDE (+ property value)

Strategic View · What a Buyer is Buying

A buyer evaluating The Coastal Pour sees a defensible operation with SDE of $324,200 at 17.5% of revenue. The multiple sits at 3.75x because the buyer is paying for cash flow plus the asset base. The deal hinges on validating the add-backs and confirming the lease + team transfer cleanly.

Buyer's primary concerns

Prime cost at 74.0% signals structural margin compression. Buyer assumes they inherit the problem unless documented improvement plan exists.

Recommendation

Ready to test the market. Readiness at 80/100 supports listing. Engage 2-3 brokers for valuation cross-checks. Target 3.75x SDE or above.

Methodology Sources

ATO Small Business Benchmarks 2024-25 (ANZSIC 4511 Cafes, 4513 Restaurants)
Linkbusiness Australia Business Sales Index 2024-2026
R&CA Cost of Doing Business Report 2025
AICVA/IBBA Seller's Discretionary Earnings Standard

Methodology v2026.05.27 · Benchmarks last refreshed May 2026 · Quarterly refresh cadence

Disclaimer. This valuation report is provided for informational purposes only. It is informed by AICVA/IBBA Seller's Discretionary Earnings standard, ATO Small Business Benchmarks, and Linkbusiness Australia transaction data, but is not a certified business valuation by a licensed valuer.

Use this report to inform decisions, negotiations, and planning. Before proceeding with a sale, refinancing, lease negotiation, or significant business change, engage a qualified business broker and consult with your accountant and legal advisor.

Briefed Intelligence is not a licensed financial advisor, accountant, or registered business valuer. Backed by our Broker Concurrence Guarantee.

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