#1 - Get his sales tax statements for at least the last year in addition to the P&L statements … if the numbers don’t match closely, start looking for a herring, I guarantee you’ll find one.
#2 - Make certain that any contract is for the assets of the business; not for the business itself. I was very fortunate that I remembered that little tidbit from college B-Law; when I purchased my place 12 years ago, the original draft of the contract called for my purchase of the business (which would have included the liabilities of the business). If I had not had that changed, my $40k investment would have put me on the hook for about $100k in unpaid bills & taxes. I would now be sending this from a padded cell somewhere.
#3 - See if you can get all the equipment running for a couple days, then have an repairmen come in to check it over. $30k seems like a good price for what’s essentially a turn=key operation (especially if it includes a POS & ready made customer list), but not if the equipment’s all crap that will only last a year or so.
#4 - Talk to the local health & building depeartments. Everything is likely fine since it’s already been set up as a pizza place, but not crossing that ‘t’ could be costly.
#5 - If possible, contact a sampling of the place’s customers - Ask what they like about the shop and what they think you ought to do to improve the business if you purchase.
#6 - Contact the landlord. Find out the exact terms of the lease, the remaining length, and if you have, or can negotiate, options to extend. If you have things you wish to do as far as leasehold improvements, ask if they’ll put any money toward them - they probably won’t, but if you present yourself properly, you may get a pleasant surprise!
#7 - Contact some of the employees that were recently let go, they can be a valuable source of what’s good and/or bad about the business.
On the surface, it sounds like a pretty good deal, but you have a good amount of homework to do to keep your backside covered. From the sound of it, you don’t have a lot more info to give us at this point, You need to find out what the sales $ are (weekly or monthly) along with labor (both hours and dollars) & food costs (and make sure the invoices match the stated cost) before you can make a more informed decision.