Exploring buying a pizza biz...

[SuperCuriousMFer]

This might be the greatest small business idea I can think of. 
I am here to learn the numbers and financials.
I am liquid and have a large startup fund.
If I start from scratch, what are ballpark startup costs?
What is a fair price multiple for an existing pizza biz?  10x annual profits? 

[Pete-zza]

In parallel with your post here, you may also want to register at the PMQ Think Tank at http://thinktank.pmq.com/viewforum.php?f=6 and post your questions there since your topic is a common one at the PMQTT. Even though it is a bit dated, you might also want to take a look at the PMQTT FAQ List at http://thinktank.pmq.com/viewtopic.php?f=6&t=3374.

Peter

[TXCraig1]

What is a fair price multiple for an existing pizza biz?  10x annual profits? 

It might be 10X or it might be 0X. My bet is closer to the latter. There would have to be something pretty special to make me want to pay much more than asset value for a pizza business (and closer to orderly liquidation value than fair market value).

Why is the owner selling?

[Mal]

Welcome to the pizzamaking forums, SuperCuriousMFer!

In addition to the PMQ links that Peter just posted, you might want to look at the "Shop Talk" board here on pizzamaking:

http://www.pizzamaking.com/forum/index.php/board,57.0.html

Regarding "starting from scratch" there is an interesting series of posts on "Pizza Quest" written by John Arena, owner/operator of Metro Pizza.  So far (1/3/2013) there have been four installments. Parts 3 & 4 focus on various financial aspects of opening and running a pizzeria.

http://www.fornobravo.com/pizzaquest/contributors/45-guest-bloggers/425-are-you-ready-to-turn-pro-by-john-arena-still-needs-editing.html
http://www.fornobravo.com/pizzaquest/contributors/45-guest-bloggers/428-are-you-ready-to-turn-pro-part-two.html
http://www.fornobravo.com/pizzaquest/contributors/45-guest-bloggers/437-are-you-ready-to-turn-pro-part-3.html
http://www.fornobravo.com/pizzaquest/contributors/45-guest-bloggers/439-are-you-ready-to-turn-pro-part-4.html

Cheers

Mal