Evaluating Existing Mat For Purchase

[Bunny]

I am a first-time buyer evaluating a mat for purchase that has been under current ownership for only 18 mos. The mat was closed for six months prior to the current owners buying it. A mat has been in this location since 1967. Over the last 18 mos., the gross revenue has increased steadily as clients returned. But in order to do a meaningful valuation with a P&L and cash flow, should I consider the revenue generated from the last 12 mos. or do I use the current YTD revenue trend in the hopes that it continues? I have water bills and all other utility bills for these last 18 mos. in order to come up with my numbers. With a limited past history to work with, I began my due diligence using the last 12 months, but maybe I should trend the YTD numbers? I'm trying to determine the "right" purchase price using some multiple of net income...and my other situation is that I know the current owners.
Any advice appreciated!

[azkid]

I don't think there's any absolutely correct answer, however I don't think the business is going to grow greatly after 18 months barring a pricing or equipment change. If you know the current owners you presumably know why the business closed previously, why they are selling and whether or not they feel the business is going to ramp up more. I would say that it is odd they are selling if they feel the business is going to grow to the sky.

As a buyer obviously you want to forecast low growth scenarios for an offer and for conservative financial projections.