Business Overview

Very busy & extremely popular (lines out the door) pizzeria with over 35 different beers on tap, located in the Municipality of Anchorage. This restaurant has been established for over 37 years and is a local’s favorite and a destination eatery drawing loyal diners from miles away. Featuring the flavors of Italy, it offers numerous styles of pizzas, subs, spaghetti & meatballs all of which is made fresh every day with fresh ingredients. The restaurant has ample banquet rooms hosting dozens of events weekly. Reasonably priced, family friendly, and a veritable cash cow. 2021 Projected:

Gross $3,477,000
Net ~$ 33,000/Month
SDE $ 644,103

This pizzeria is a definite candidate for expansion and/or franchising. On a typical SBA note the buyer would need to put 10% down in the form of an investor cash injection. The total time to recapture investor cash injection is less than five months based on cash flows.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: $644,103
  • Gross Revenue: $3,477,000
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $30,000
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other interests

Additional Info

The transaction won't include inventory valued at $30,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. Nonetheless, the real reason and the one they tell you might be 2 absolutely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or an array of various other reasons. This is why it is very important that you not depend completely on a vendor's word, however instead, utilize the seller's solution combined with your overall due diligence. This will paint a much more reasonable image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new clients? Many times, operating businesses have repeat customers, which form the core of their daily revenues. Specific factors such as new competitors sprouting up around the location, roadway construction, as well as staff turnover can impact repeat customers and negatively impact future revenues. One essential point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the higher the chance to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? How might the regional mean house earnings effect future revenue prospects?