A man walked into the pizzeria at 3 p.m. on Tuesday—our quietest window of the week. Mid-fifties, judging by the salt-and-pepper hair. His tailored navy suit looked wildly out of place in our college town. Even more so when he ordered a slice.
“You’re the kid who bought the place for a dollar, right?”
I slid his slice into the oven to heat. “Yep. That’s the dollar right there.” I pointed to the framed bill on the wall.
He gave it a glance, then studied me. “How’s business?”
“Not bad.”
“Oh yeah? You moving more pizzas than the previous owner?”
I shrugged. “A bit.”
“My gut tells me you’re being modest. I’d bet you’re moving at least 25% more, aren’t you?”
There was something about him—clear-eyed, steady, the kind of guy my dad would call a straight shooter. I found myself wanting to level with him.
“Closer to 50%, actually.”
He slapped the counter. “Knew it.” He pulled out a card. Black. American Express. First one I’d seen in real life.
“How’s your cash flow?”
Not a question most customers asked.
“Rough,” I admitted.
He nodded, as if I’d confirmed something he already knew. “Cash can be a beast when you’re rebuilding a distressed business.”
I slid the slice out of the oven. “You have experience there?”
“Only twenty years’ worth. How much for the slice?”
“That will be six thousand, four hundred and eighty-two dollars.”
He enjoyed a good laugh at that one. “No wonder you college kids are all in debt.”
“If that’s above your budget, I’ll settle for $2.50.”
“Done.” He tapped his card. “Have you paid yourself yet?”
I shook my head.
“Working long hours?”
“About fourteen a day. Plus classes.”
He leaned in slightly, lowering his voice. “Behind with any of your vendors?”
I hesitated. “A couple.”
“Yep, it’s hard in the beginning. But I think you’re going to make it, Ty. 50% improvement in a couple of months is nothing to sneeze at.”
“It’s 42%, technically.”
“Still impressive. And you’re just starting out. I doubt you’re planning on slowing down.”
“No, sir.”
Though he’d paid, he still hadn’t touched his slice.
“I worked eighteen-hour days when I opened my first business. Don’t regret a minute of it. But now I know it doesn’t have to be that hard.”
I raised an eyebrow. “No?”
“There are shortcuts.”
“And I’m guessing you’re about to pitch me one.”
He grinned. “You bet I am.” He pulled out a business card: Collin Porte, Investor.
“I own pieces of over sixty companies.”
“When I was born,” I said, “my grandmother put a bit of cash for me into the S&P 500.” I’d thought more than once this past month about taking that money. It wasn’t much, not even a thousand dollars, but every penny counted these days. Still, whenever I thought of Gram’s reaction if I closed the account she’d started for me, I held back. “That means I own a portion of 500 businesses.”
He laughed. “Five-oh-one, counting this place.”
“That’s right.” I grabbed a rag and the spray bottle.
“I’ll go out on a limb and guess that my portfolio and yours aren’t quite in the same league.”
“Probably a safe bet.”
Porte lifted his slice so I could wipe the counter. “I own half of those companies outright.”
“And the rest?”
“I own stakes ranging from 15% to 70%.” He set his slice right back down, not even taking a bite. He wasn’t here for pizza.
I kept my eyes on my rag, not wanting to look too interested. “What kind of businesses?”
“You name it. I own a mechanic shop, five e-commerce websites, a couple of hair salons. I won’t bore you with the full list. But fifteen are in the restaurant space, including three pizzerias.”
I sprayed the glass case around the pizzas. “And you’re interested in this one too?”
His smile shone with warmth and confidence, verging on cockiness. “Can’t blame a guy for wanting a piece of a good thing.”
“What makes you think it’s such a good thing? I did buy it for a dollar after all.”
“True, but you’ve already made a 42% improvement, and I believe you’ll make a lot more. You’re a likable guy. You’ve got a good location, right off campus, with no lack of hungry, pizza-loving customers. I like what I see enough to roll the dice.”
“How big a piece are we talking about?”
He leaned over the glass. “I’d go 50%. Let us be equal partners.”
“And how much would you offer for that?”
“I’d match what you paid. We can frame my dollar and hang it next to yours.”
I dropped the rag and crossed my arms. “You know how many people have offered me the same deal?” It had become a running joke around the pizzeria. That was the price I paid for the free publicity on the dollar purchase story. Carrie’s was the only tempting offer. But unlike her, Porte reeked of cash. If anyone was going to come forward with a real offer, it was him.
“I imagine quite a few, given how much coverage your story has gotten. But how many of them are offering to eliminate your cash flow issues?”
“You’d do that?”
“Oh yeah. I have more than enough credit and cash reserves to carry this place while it gets on its feet. And I’m not just talking about the vendors either. You’ll never have to worry if there’s enough money in the register to pay yourself. You could drop to reasonable hours immediately, since you’d have the cash to hire more staff.”
“I have to admit, that sounds tempting.”
“Honestly, Ty, that’s just the beginning. I have a bookkeeper dedicated to my restaurants. She’d handle all the bills, salaries, you name it.”
I furrowed my brow. “But her time would be billed to the business, right?”
“I assure you, Ty, my goal isn’t to make a killing reselling business services. My bookkeeper’s mighty anal about tracking time. If she spends 5% of her hours on your business, then it covers 5% of her salary. And I’m not a loan shark either. If I own half this business, my banker will give us a line of credit in three minutes flat at the best rate the bank’s offering. Trust me, all the services my businesses offer aren’t going to cost you a dime. They’ll make you money.”
“How?”
“Economies of scale for one. Since I buy so much, I probably pay 15% less for ingredients than you do. That goes right to the bottom line. And sure, my tax attorney will send us a hefty bill each year, but he’ll save us a heftier sum by milking the tax system for all it’s worth.”
This was starting to sound more attractive, but he wasn’t done.
“The general manager of my restaurant division has been in the business for over 30 years. He can help you avoid a heck of a lot of mistakes. And when you graduate in a few years, if we want to hang onto the place, he can add it to his docket. Instead of being tied down here, you could go to grad school, travel the world, or whatever else suits your fancy.”
“So I’d just hand over the business?”
“When you’re ready to. Of course, you’d no longer get your salary if you were no longer working here, but you’d still own 50%, so you’d get an equal share of the profits if we continued to run it.”
My brow furrowed. “But you might not continue to run it?”
“Ty, I buy businesses. This is what I do. Some I hold onto and run as ongoing entities. But a lot of the time, I raise the value enough that buyers come to me, and let me tell you, they’re not offering the dollar you paid. They’re coming to the table with real dough. And 50% of that would belong to you.”
This was entirely different from Carrie’s offer. As much as I’d needed her then, I knew that by the time she graduated, I’d be positioned to replace her. But I was already learning the hard way that it could take me decades to accumulate the knowledge and resources Collin was offering.
“And what if I didn’t want to sell?”
“Then, as long as it’s profitable, we’d keep running it and collecting dividends. But I’ll tell you this much, if you want to go far in the business world, don’t be afraid of selling. You’ll make your biggest money from exits.”
Was this too good to be true?
“My professor has been advising me the whole way. I wouldn’t want to make a decision like this without consulting her.”
“Of course not.” Porte patted my shoulder. “Consult anyone you need to. And I’m sure you’ll want to look me up as well. Make sure I’m not some con artist. Take your time. And when you’re ready for the next step, I’ll invite you to meet my whole team. You can even bring your professor along if you like.” He reached out his hand. Still in a daze, I shook it. “Take care, Ty.”
Collin walked out, leaving his slice still untouched on the counter.
I called Professor Hunt the second Porte left.
“I think this is a great topic to discuss in class,” was all she said.
Then she hung up.
I stared at the untouched slice he’d left behind. Why not? It was already paid for, and something about selling the same slice twice felt unethical. I ate it.
The next morning, Professor Hunt scrapped her lesson on inventory management and handed me the floor. I told the class everything—Porte, the offer, what he’d promised—then sat down.
Hunt opened the floor for debate and instructed me to listen quietly.
Owen cracked his knuckles. “The vultures are circling.”
“Vultures, eh?” Professor Hunt said.
“Sure. Guy smells blood, swoops in, tries to grab half of Ty’s business for nothing.”
“It’s not for nothing,” Andrew said.
“Come on, Andrew. We don’t have to tiptoe around Ty because he did the same thing a few months ago. Basically, it’s nothing.”
“I’m not tiptoeing, Owen. I applied for a business loan and got rejected. At our age, cash is hard to access. But not for this corporate guy, what’s his name?”
“Porte,” I said.
“Right.” Andrew nodded my way. “Porte’s got ready money whenever Ty needs it.”
“You think that’s a good thing?” Meg piped in. “That’s what sunk the old owner. Ty’s having to build with few resources, just like the rest of us. And he’s building a solid foundation by bootstrapping.”
“But why only learn the hard way?” Jenna asked. “This Porte guy’s not a walking bank—he’s offering Ty mentorship. I would love that right now.”
“How so?” Hunt asked.
“Professor, your advice is amazing”—Jenna flushed red halfway through the sentence—“but I can’t exactly come to you every day. And no offense, but you’re not exactly a hair and makeup expert.”
Owen snorted. “And we’re not exactly a panel of beauty queens ourselves.”
“Exactly.” Jenna nodded. “I don’t like bothering people, but I’d have zero problem calling up someone who owns half my business.”
“Okay, I hear that,” Owen said. “I’d love to have the ear of someone who’s built a few hundred sales funnels. But fifty percent? Come on! It’s not like he’s pumping real money into the business. He’s just helping The Pizza Lab take on more debt.”
“Personally,” Andrew said, “I think the money is only a small slice of the pie. Ty’s already doing more sales than all of us combined, plus juggling classes, vendors, staff, everything. This Porte guy’s offering to take over all of Ty’s back-end. That’s got to be a gigantic relief.”
“It might be a relief now,” Meg said, “but what happens if things go sour? Plus, all that extra work is forcing Ty to learn what he’s doing.”
“But at least he could work a little less.” Andrew turned to me. “No insult, Ty, but you look like…you look ragged. How much are you working these days?”
“Twelve hours a day,” I said. “Sometimes fourteen.”
“And you’re not even paying yourself. I’m sure you’d be learning plenty even without having to manage the back-end, right?”
I nodded. “There’s still managing staff, especially since my manager’s graduating soon. And I’ve still got to figure out how to market the place better, increase sales…”
“And improve the quality of your product,” Meg interjected. “Which, by the way, might get worse with this guy. He’ll likely pressure you to go with his suppliers. You might get cheaper cheese, but it could be that nasty synthetic stuff they use in the cafeteria.” Meg cringed. “You’ll lose control over how things run. He might fire your staff, cut your favorite dishes, or expect even longer hours than you’re already working.”
“Exactly,” Owen added. “You’ll only be half owner, but you’ll still be 100% operator.” He fired a finger pistol towards the front of the room. “That was for you, Prof, in case you’re wondering whether I’m paying attention.”
“Well done, Owen. You bring a good point,” Hunt said. “Does anyone have a counter to his argument?”
Andrew’s hand shot up. “I do. I just keep going back to how harried Ty is. He might be self-employed, but it looks more like self-enslaved.” He caught my gaze. “I’d rather work less and have a more balanced life if I were you.”
“I’m with Andrew,” Jenna said. “The whole reason you took on this business is so you could cover expenses and be a college student. Are you even managing your classes right now?”
“Barely.” I squirmed in my seat. “I’ve gotten Professor Lowry to give me a few extensions, but his patience is running thin.”
“I guess you have to decide, then, whether you’re in this town to go to college or run a pizzeria,” Jenna said. “Cause if you flunk your classes, you’ll be stuck here serving pizza to freshmen for the rest of your life.”
“I don’t think that’s a fair way of putting it,” Owen said. “Ty’s been showing up to our class like a champ. So whatever, he might get a crappy grade in English lit, but he gets to be his own boss.”
“Yeah,” Meg added, “and if Ty keeps growing and improving, he might want to take on investors. If his share is only 50%, he’ll get diluted down to minority partner in his own business.”
Owen shook his head. “That’s insane, man. You can’t let the vultures devour you like that.”
“You’ve got to be careful with your vulture language, Owen,” Professor Hunt said.
“Look, I meant no offense.”
Hunt crossed her arms. “You might not mean offense, but language has power.”
“I wasn’t implying that Ty’s a vulture.”
“Honestly, I couldn’t care less if you offend or not. The bigger issue is that if you perceive opportunistic business people as vultures, you’ll fail to see opportunities right in front of your face.”
Owen cocked his head. “Because I don’t want to see myself as a vulture?”
“Precisely.”
“So,” Meg asked, “you’d call this Porte guy an opportunist?”
“I’d call him a problem solver,” Hunt said.
Owen smirked. “That’s an awfully generous title.”
“He’s earned it. The fact is, the people who are best at business acquisitions, the ones who pay next to nothing for highly valuable businesses, are masterful problem solvers.”
Meg’s brow furrowed. “How do you figure that?”
“Think about the conversation he had with Ty. At first, Porte just asked questions to figure out Ty’s problems. With all his experience and business intuition, he quickly homed in on the heart of the matter. Then he offered solutions.”
“In exchange for 50%,” Owen said.
“Precisely. And even though it was a huge ask, Ty is considering it because the truth is, his solutions really can reduce his stress and propel the business forward. Only a few months ago, Ty was in Porte’s shoes. I knew from experience the problems Bartley would have shutting the pizzeria down and shared them with Ty, who then made an offer that removed the biggest obstacles. Ultimately, Bartley took it despite the monetary losses because the solution we offered was better than sticking with his problems.”
“So.” Owen slowly licked his lips. “All we have to do is figure out people’s problems?”
“No, you have to find solutions. And if you can solve problems without throwing money at them, you can often acquire businesses, in whole or in part, for nothing.”
“So you think I should take his offer?” I asked.
“I didn’t say that.” Professor Hunt approached me. “Speak it out. Do you think it’s a good offer?”
I studied my notepad, where I’d been scribbling everyone’s pros and cons below my own. “In some ways. It takes care of my biggest stresses. I won’t have to worry about paying vendors on time or having enough cash to pay myself. I get to drop a bunch of the hassles of running a business and learn from people with experience.”
“What don’t you like about the offer?”
“Well, the equity for one.” I looked over at Meg and Owen. “Giving up so much of what I’ve been working for feels like a punch in the gut.”
“You tell her!” Owen said.
Hunt held her hand up, indicating the classroom debate was over. “What else, Tyler?”
I wrung my hands. “This won’t impact my grade, will it?”
“Why would it?”
“Because I’m supposed to figure all this stuff out on my own.”
“You’re supposed to learn to make intelligent business decisions. Don’t make a stupid choice just to show me how hard you can work.”
“Does that mean you think turning him down would be stupid?”
“Stop putting words into my mouth. I’m not making this decision. You are.” She pointed right at me. “Do you want it, or do you not?”
My shoulders crawled up to my ears. “I’m not sure.”
“Then your path forward is clear.”
“It is?”
“There are two things you must do. First, figure out what information you need to make a decision. Next, go get that information as quickly as possible.”
“I’m glad you called me back, Ty,” Porte said.
I cleared my throat. “To be clear, I haven’t actually reached a decision.”
“Just doing your due diligence?”
“You could say that.”
“So how can I help?”
“Tell me honestly. Would you do it if you were me?”
“Absolutely.”
“Why?” I leaned back in the cramped pizzeria office and closed my eyes to focus.
“Business is all about value creation. The faster you build value, the more you can make. So here you are slugging your way through your first business. You’re working your butt off and taking home zero cash. Are you creating value? Heck yeah, but it’s slow going. It’s hard work. And there’s no guarantee you can keep the doors open long enough to pull off the transformation. Follow so far?”
“Sure.” I nodded, even though he couldn’t see me.
“Good. Now, you partner with someone like me, and suddenly, the value of your business takes a quantum leap forward. Sure, you’ve given up 50%, but once the biggest problems are removed, it’s worth more than twice as much, so your equity will go up, not down.”
“Short-term, you’re right,” I said, eyeing the invoices scattered across my desk. “A business with strong cash flow is worth a lot more than one on the verge of bankruptcy. There’s a reason I was able to buy it for a buck. But let’s say I’m able to slug away at it for the next few months and fix my cash flow issues on my own. I’ve still created the same value without giving up my shares.”
“Have you really? True, you might fix the cash flow issues on your own, but that’s a big might. If you don’t, you could wind up with nothing. And that would really sting. But let’s say you do fix them. Is the business worth as much? Not even close. You won’t have the economies of scale, which go right to your bottom line. More fundamental than that, you won’t have a business set up to sell.”
“I’m not sure I want to sell.”
There was a pause on the line, as if he was considering his words. “I hear that, but you asked about business valuation. How do you work out what it’s worth? Believe it or not, there are over a hundred different tests that economists apply to figure out business valuation. They’re all garbage. Only one metric counts.”
“What’s that?”
“How much someone actually forks over for the business. The day before a business is sold, you can argue till the cows come home about what it’s worth. The day after it’s sold, it’s simple. When you bought your business, it was worth one dollar. How do I know? Because that’s what you paid. So you want to know why your business is going to be worth more with me on board? It’s easy. I know how to sell it for maximum value, and you don’t, which by definition means it will be worth far more.”
“And if I don’t want to sell?”
“Is it your dream to own and operate a pizzeria all your life?”
I glanced down at my mattress on the floor of the office. “Not really.”
“Mine either. I like to get in, create value, then get back out. Trust me, it’s a far faster path to wealth than building businesses from scratch.”
“But couldn’t I get someone else to manage it and still take profits over time?”
“Sure. I have some businesses that I hang onto. But even those have every document a buyer could want, ready in case an ideal one comes along. And if one does, I’d sell in a heartbeat. Why? Because cash is king in business. A big exit can position me for that next big acquisition. That’s why I never make the mistake you’re making now.”
“What mistake?”
“I never fall in love with my businesses. I fall in love with the revenue. I sometimes fall in love with the people. But falling in love with the business can cause you to hold on too tight and fail to make the necessary pivots.”
I thought of Mr. Bartley, pumping new money into this place month after month. Had he fallen in love with the business rather than the bottom line? “I’m still not sure.”
“I get it. Decisions like this can be scary. You’ve got so much invested, you’re afraid to mess up. Just remember that when we talk about value creation, it’s not just dollars and cents.”
“What else is it?”
“It’s about your professional development. Ten years from now, your own experience will be your biggest asset. You’ll get one kind of experience figuring this all out on your own. There’s something to be said for falling on your face and picking yourself up. Or you could learn from a professional team with over a hundred years of combined experience. And you could tag along with me as I do deals and watch as I prepare the business for sale. It all depends on how you see your future. Is this pizzeria the only business you ever intend to buy? Or do you hope to follow my path and buy business after business?”
That point landed hard. I had never intended to go into the pizza business. And if this became my education in business acquisition, it could really propel me forward. “Let’s say I want to buy more businesses. What would I learn from you?”
“Business negotiation for one.”
“I negotiated a pretty good price for this one. Or at least my professor did.”
“Indeed, you had great guidance on this one. But negotiation isn’t just about price. Amateurs put all their focus on the dollar amount. The pros give far more attention to the terms.”
“How do you mean?”
“Well, let’s say I offered you a million dollars for the pizzeria today, would you take it?”
“Hell yeah.”
“Great. I’ll make you that offer. I’ll give you a dollar a day until it’s paid off. We have a deal?”
I laughed. “I’m afraid not.”
“Didn’t think so. But you’d be shocked at how much the right terms can transform a deal. Everyone assumes business owners just want as much cash upfront as they can get, but just as often they have other concerns.”
“Like what?”
“Like they want to make sure their employees and customers are taken care of and their legacy stays intact. Most of the time, I buy businesses with little or no money down because I take the time to learn what the owner wants and make them a deal that fits their needs. Like we say in the pizza business, it’s all in how you slice it.”
“Like with me.”
“Like with you. You’re under a heavy burden at the moment. I figured if I could take enough pressure off you, I could get half the business for nothing.”
“Do I need to make a decision now?”
His laugh was deep and reassuring. “Ty, you don’t need to do anything.”
“What I’m asking is, will this offer still be available if I need it down the line?”
“Look, Ty, one of the key principles of sales is to create scarcity. That’s why all these websites have countdown timers, and people are always screaming at you, ‘Act now before it’s too late.’ I’m guessing if I were to push you for an answer, I’d be more likely to get a yes. But that’s not my style.”
“So if I were to come back in a month, you’d still be open?”
“I make no promises where I’ll be or what I’ll be interested in a month from now. But most of the time, when I see a good deal on the table, I take it. I won’t turn you down out of spite or some petty grudge about making me wait. You’re welcome to come back to me anytime with a deal on this business or any other, and I’ll be happy to consider it. Just be careful you don’t fall into paralysis by analysis. You can get caught thinking and thinking and thinking, and meanwhile, you’ll be prolonging your stress and not getting paid for your work.”
I heard that. But did I really want to give up 50% of my business? “I’ll think it over. Thank you for your time.”
