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Best way to sell a Thriving pizza shop?

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pizzapizza12

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So I have been thinking about selling my Delco/Dine in. It is extremely busy, however im worried that if I market the store with my actual sales it could invite other chains into my market. Due to the high volume, well at least I consider it a busy store. Im sure some of you guys would call it decent or kinda busy

We are on pace for 1.3-1.4 million in 2014. The store is a gold mine Low rent 2,000 a month, labor without an owner working is about 23% with a GM getting paid 40k a year.

so my question is, how would you go about listing this in order to cover you ass. Part of me wants to keep it, but I know these sales cant keep up forever. I don’t even know what its worth really. 2014 should Net me 375k +/- 10% from this store alone.

Am I stupid for wanting to sell? I figure its got to be worth 800-900k? No one is going to pay that much for a pizza place right?

Just kicking this around
 
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Check your PMs.

Some key points for other readers:
  1. Clean up the books well before listing the business. Stop paying for things like family cell phone accounts, unrelated travel, home utility bills, personal groceries. Yes, your taxable income will be higher, so will the basis most commonly used for valuation.
  2. If at all possible, show a rising sales trend. No one wants to catch a falling knife. Even if this means ramping up marketing and reducing the profit percentage a bit.
  3. Document all systems and procedures so a buyer has confidence that they can step into a well oiled machine.
  4. The first offer is often the best offer and sometimes the only offer. It makes sense to try and make a deal… The best time to sell is… when you have a buyer!
  5. Make sure your lease has at least 3 years to run and an option behind that. If needed, do a new lease. Buyers are reluctant to buy businesses where the location is not certain for a reasonable length of time after the purchase.
 
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bodegahwy gave you the best advice there is… my books were clean, sales curve up, documentation was solid… which resulted in a huge payday. Serious buyers will not pay for smoke… they need proof.
 
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I forgot to mention, I have a full time book keeper, books are 100% accurate and current by the 5th of the month for the prior month.

And have a CPA do our taxes every year. So there is no smoke to sell

We do pretty well. However I would like to move and have new experiences and possibly open another store where ever I choose to move to, while im still young
 
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I have a question because I’m really curious about this… If the store is doing so well, would you/have you considered giving the GM a raise, making him a partner, and moving anyway?
 
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I just cant imagine owning something that I was not close to

I have a hard time letting go. But yes I think about that but it worries me to death
 
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instead of a raise, offer a percentage of profits. That way the manager is motivated to keep things going on the clean track they are, and to improve sales and profit. Having a bookkeeper do everything is a great idea, as long as the two aren’t colluding against you.
 
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Check your PMs. If you send me your email I will send you a piece on pizza store valuation I wrote for PMQ (they asked) that has not run in the magazine yet. It will help you understand how businesses like this are valued and what they typically sell for.
 
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Oh yeah… and do NOT list it with a Realtor. List with a business broker that does this for a living. Far too many real estate agents will take business opportunity listings when they have zero knowledge about it. They will waste your time, blow the deal and meanwhile impair the business with how they market it.
 
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How about picking up the book “The Emyth” and just read it for fun. You have built a concept now grow it beyond your own resources and build more value for all involved. Customers, employees, suppliers, landlords… Start from scratch in your existing business.
 
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Is your location in Delco, pa
I am looking to buy a business in that area
If your business is in that area I would love to check it out
 
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