?_Green: price for store

Trying to buy a kosher pizza parlor (eat-in/take-out, non-franchise) in Maryland and need to know how to estimate what to pay. Seller grosses $600K and puts net at $60K. I’m under the impression that one-third of gross ($200K) or three times net ($180K) is the right ballpark to pay. Is this correct? Who can tell me with authority? Thanks for your help!

are you sure its a “kosher” kitchen/pizza parlor?

Rare @ best and challenging 2 keep kosher @ a reasonable cost…

who is certifying “kosher”?

your assumption are fair - ask 2 see sales tax & fed tax filings…look @ several months of food purchases…

just a start b4 u pay your “Fool’sTax”

I would stick with the 3X earnings. Make sure you are confident that the earnings are real. Don’t count stories about the unreported cash, make sure that the expense categories from 1,2,3 year prior show consistency. I could make any one year look great by managing year end expenses. Also, double check the lease to make sure you have several years to go or insist on a new lease as part of the deal.

Also, that 3X is the high end. 60K does not sound high to me for earnings on a 600K establishement. In fact it sounds low. It could be a good deal.