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How much is that business worth?

I`m looking to buy an established restaurant. In my area the
prices reflect about 3-5 years profits, so a business that profits
$50,000 per year are sold for around $135-150k. I don`t really
know how to value a business like this. Is 3-5 years profit a
normal range for an established business? Thanks a lot.
prices reflect about 3-5 years profits, so a business that profits
$50,000 per year are sold for around $135-150k. I don`t really
know how to value a business like this. Is 3-5 years profit a
normal range for an established business? Thanks a lot.
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