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What is the business multiplier for setting the price for 50k profit pizza business

I am looking into buying a pizza business and I was wondering what the price should be for a business that is making 50k a year profit?

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Answers (4)
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Freedom Business Brokers
Orange County, CA

Jack
Without enough information this question can't be answered,however based on no information
you can mutiply monthly net with 16 to 36 months, somewhere in between depending on the motivation of the seller
Sid0653@hotmail.com

Jan 28, 2011
David Gagné
Dabeck Business Brokers
Business Broker
Monroe County, NY

After giving your question I realized I gave you the Approx. list price for a business with 125k in sales. To better help you please check out several articles I have placed on my blog. see the web reference below. Good luck if you have any more questions please don't hesitate to email me directly I love helping future entrepreneurs!

Jan 22, 2010
David Gagné
Dabeck Business Brokers
Business Broker
Monroe County, NY

50,000 / .4=125,000

Jan 22, 2010
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Exit and Answers, Inc
President
San Diego County, CA

There is a great book that uses "rule of thumb" valuation method and it's call Business Reference Guide by Tom West. It says the value would be 4x monthly sales plus inventory. The book explains that this varies based upon if it is a franchise or location but at least gives you a starting point.

Dec 23, 2009

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