The story
Pfalz was the brainchild of Alfred Eversbusch, son of a foundry owner in Neustadt an der Weinstraße. It appears that he had built his own aircraft between 1912 and 1913, although the exact origin of the design is unclear. On June 3, 1913, the Pfalz company was registered, consisting of Alfred, his brother Ernst, and his brother-in-law Willy Sabersky-Müssigbrodt, as well as several investors: Richard and Eugen Kahn, and August Kahn (unrelated).
They initially proposed to build designs from Albatros, but their attempts at a deal amounted to nothing. Their next deal was with Gustav Otto Flugzeugwerke, building examples of his pusher-propeller biplane design. The original example was sent to Africa on a tour, and ended up being pressed into service as a scout.
The company had always planned to set up shop at the new airfield in Speyer, but they initially had problems securing land for a factory. The Gustav designs were actually built in the Speyer Festival Hall, which was unused at the time. It was not until February 6, 1914, that the city agreed to sell Pfalz 7,000 m² to build their factory. Construction was completed in July, only one month before the start of World War I.
From Wikipedia’s article on Pfalz Flugzeugwerke, shared under CC BY-SA 4.0.4