Valuing a small business is not guess work. It's not what some other businesses of the same type may have or may not have been sold for, it's not even what a business owner "feels" they want or deserve. It is a formula based on many factors. Peter Siegel, MBA from BizBen & others discuss this topic.
Comments & Feedback From Pro Intermediaries & Pro Advisors On BizBen:
I work with many restaurant sellers, and one of the things that can definitely affect the valuation is the location and hours of the business. A coffee or restaurant business that is Monday thru Friday with short hours and a captive audience, in a nice area, that shows good income, can many times attract a higher price, because it's less of a time commitment and the owner is able to make a good income and still have a life outside of the business.