Listing ID: 66568
Business Overview
For sale is a premier source for urban art and the most complete street art supplies store. The company prides itself on supporting urban artists from around the world, giving them exposure in its blog and supplying them with the finest tools. It offers leading product lines including its own brands as well as other popular labels. The company has accumulated an email list of 150k and 800k+ engaged social media followers.
The company stocks inventory and fulfills orders from leased warehouse space. The approx. inventory value on hand is about $1.1M CAD. The business is run by one owner working 20-30 hours per week managing marketing tasks. The day-to-day operations which include customer support, warehouse and shipping operations, and B2B Sales Rep is handled by 8 FT employees. There is one main contractor who handles social media, digital ads, and creating promotional products. The employees and contractors are willing to continue on with a new owner.
This business has been experiencing YOY growth! Its success has continued in 2021 with sales up 45% and profits up 44% for FYE Jun 2021 over FYE June 2020. In the trailing 12 months ending Dec’21, sales and profits are up 60% and 73% respectively over FYE June 2021.
Key Benefits
• YoY Growth
• Top ranking on many important search terms
• Huge Social Media Presence – 800K+ followers combined
• Large Email List ~150k (~50k Active)
• Exclusive Agreements – negotiated shipping rates no longer offered to new clients
• Strategic Warehouse Location – low shipping fees for anywhere in the USA, as well as no duties paid with 99% of shipments going into the USA
Listing Price: $3.25M CAD or USD equivalent at time of close. Currently ~$2,550,000 USD based on recent exchange rates.
Financial Summary
TTM Gross Revenue $3,621,414 USD
TTM Cash Flow $694,545 USD
TTM Gross Revenue $4,583,198 CAD
TTM Cash Flow $879,004 CAD
*Converted from CAD to USD at the exchange rate of 0.79015 on 12/31/21. USD equivalent at time of sale will vary based on exchange rates.
Financial
- Asking Price: $2,550,000
- Cash Flow: $694,545
- Gross Revenue: $3,621,414
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2002
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Yes
Pursue Other Interests
Some of this company’s competitive advantages include its longevity, great reputation, and better search rankings.
Building on its well-established foundation and strong performance, this business is perfectly positioned for a new owner to take this business to its next level of growth. Some strategies for future growth include: • Expand and scale the company in other markets • Expand in the fine art supplies world • Distribute products in the fine art/hobby stores market
Additional Info
The venture was established in 2002, making the business 20 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell companies. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they might say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of various other factors. This is why it is really essential that you not depend absolutely on a seller's word, but rather, use the vendor's answer combined with your total due diligence. This will repaint a more practical image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that profit margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new customers? Most times, companies have repeat clients, which develop the core of their day-to-day earnings. Certain variables such as new competition growing up around the location, roadway building, as well as staff turn over can affect repeat clients as well as adversely influence future revenues. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the neighborhood typical house income impact future income prospects?
