Possibly might buy a restaurant.

My first question is why is the current venture quitting? May be you are looking at trying to revive a dying horse. I'd be all over their books, talk to their help, neighboring business, health dept, their financial/bank people. In the states more than 90% of the new start-ups don't last a year and not many more last 2 years unless they are franchised. Next I'd look at location, location, location. Also, using the name of a failed business is a sure looser. You want new and improved. Let us know what you find

Check with the health department, typically an ownership change triggers an update of the health codes. If the restaurant is more than two or three years old, you will almost certainly face changes. Do not rely on inspection certs, as the old codes only apply to the old owner. I've seen several cases where the changes exceeded $100,000.

Most failed businesses fail because they dont have the financial support needed or they dont have someone running it properly. If you look at ANY of the tv shows about turning a failing business arounds its because they arent managing things properly, whether its Ramsey or Irvine with restaurants, Taffer with bars and night clubs or Melchiorri and hotels, they are always mismanaged. It has very little to do with the age of the business, rather if you have backing and good management skills.
You definitely need to know the condition of the building and the equipment. Just because something is NSF and is cleanable, doesnt mean it has been cleaned and properly maintained. Look at their expenses, rent/lease, utilities, etc make sure you arent paying too much in those overhead costs that you arent able to make money. Get to know the staff and see if any of them would want to stay on or if they all plan to leave, and see which ones are worth keeping on staff. Are there employment conditions that you have to keep the staff if you buy it?

All great advice above. I'd want a no compete clause signed as well in the deal. I'd want to look at the past 5 years tax records as well. Personally I'd put no more than a 50% value on all equipment total value, then add in the value of any property that is part of the deal and gross profit of somewhere between 1 and 3 years from the tax records. Total that up and the max value I'd pay for the restaurant would fall somewhere in those figures.

all good stuff above..number one is location, number 2 is can you improve on their reputation, to pull back in customers that did not enjoy?
Can you do this without a loan other than mortgage on property? If you have to finance equipment, dont do it...
The only way I would do a lease if it was option to buy, property only.

Honestly, I would not keep the current name. If you didn't think it was that good there are others that think the same way. Basically you will be relying on your lunch crowd and catering for your income stream. Do not assume that you will get people to come to your place in the evening if there is nothing else around to draw them there. See what their food and labor costs are that will tell how well the place has been run.

Lot's of advice here. Look closely at their accounting records. Hire a CPA if you need the expertise. What are the trends in the gross revenue, expenses. Does the name have value or is it a detriment? the value of the equipment is salvage value. What a auction house would get for it.. This is risky. Be careful.