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most definitely too good to be true, right?

H

higgybaby

New member
The asking price, gross income and cash flow seem askew to me.Not very experienced on this, but doing research to try and figure these things out for when I do finally decide to buy.

Asking Price: $29,000
Gross Income: $240,000
Cash Flow: $45,000
EBITDA: N/A
FF&E: $29,000.00 *
Inventory: $3,000.00 *
Real Estate: N/A
Year Established: 20
Employees: 5

http://www.bizbuysell.com/Business-...zZnElM2QlMmZ3RUZEV3M5Y0dsNmVtRW1jblJ6UFRFJTNk
 
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Not sure why you would think it’s too good to be true. It doesn’t list the equipment but what I see in the photo doesn’t amount to much value. The lease being 13% of sales doesn’t bode too well for longevity without significant growth. While there are plenty of pizza businesses that can survive at $20,000/ month in sales the majority don’t last. If you really like to location and the leasehold improvements, it might be worth purchasing, but if you don’t have plans as to how you will significantly increase the revenue, why bother?
 
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Hi higgybaby:

85 seats and 5 employees that does not compute.

I see no pizza equipment in the photo.

George Mills
 
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But there are 18 open flames up top! 😛 I am seriously thinking they cook pizza in those 3 little ovens??? :roll: Otherwise…why is the need there for 18 burners? This could be the reason for low sales… only having the capacity to bake 6 pies at a time and slow recovery time!
 
obviously you need to get more info. Like an equipment list. But 29k and your in business doesn’t sound bad at all.
 
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There are quite a few shops out there in that price range. People who weren’t ready to be in business, or are just too tired to keep going who want to get something out. In general, if that is your price range, you can find something you can work with.

A few tips though. You will want to dump the menu, most of the staff, and the marketing. Starting off fresh is a much better way of doing it than trying to fix what was broken to the point that the shop was up for sale for a sub $40k price.
 
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Let’s say its all true. That’s a lot of work for that kind of income. A good ROI is not necessarily a good investment on its own. Lot’s to consider.
 
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Thanks so much for the feedback. That’s why I love this forum so much. Great insight and advice from the experts!
 
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