Listing ID: 66786

Business Overview

The Company sells and installs business furniture and provides complementary services to market segments which are less affected by the pandemic’s work from home trend. The Company’s comprehensive offerings and strong customer service facilitate customer acquisition and retention.

The Company has consistently high repeat sales with no customer concentration. The mix of new and used products serves customers changing needs. Sales of like-new used furniture has enabled the company to post strong results even in weak economic times.
2021 has posted a strong rebound and is performing at pre-pandemic levels.

Working capital requirements are low due to favorable billing terms and low fixed costs.

This business is very scalable and has excellent expansion potential. The present owner works an average of 30 hours per week.

Financial

  • Asking Price: $549,000
  • Cash Flow: $189,570
  • Gross Revenue: $1,500,175
  • EBITDA: N/A
  • FF&E: $182,000
  • Inventory: $30,000
  • Inventory Included: Yes
  • Established: 2000

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:11,500
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leased facilities are centrally located to the Company’s serving area. Effective inventory management yields a secondary benefit of reduced warehouse space requirements. Furniture, Fixtures, & Equipment (FF&E): The assets are up-to-date and support future growth. Inventory: Low investment and rapid turnover.

Is Support & Training Included:

Seller will transition the business according to the purchaser’s requirements.

Purpose For Selling:

Retirement

Pros and Cons:

Is modest and primarily local. The Company’s product mix and services make it an effective competitor.

Opportunities and Growth:

Washington State’s Puget Sound region continues to grow with more start-ups and companies moving in from out of the area along with growth from established companies. The Company's products are a cost effective solution for all companies and particularly for start-ups and young firms. A strategic purchaser can leverage their existing resources and realize even greater profitability

Additional Info

The business was started in 2000, making the business 22 years old.
The deal shall include inventory valued at $30,000, which is included in the listing price.

The company has 8 employees and is located in a building with approx. square footage of 11,500 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. However, the genuine factor and the one they say to you may be 2 entirely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is really important that you not rely totally on a seller's word, however instead, make use of the seller's solution in conjunction with your general due diligence. This will repaint a much more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover items like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new customers? Often times, businesses have repeat customers, which develop the core of their everyday earnings. Particular elements such as brand-new competition sprouting up around the area, road construction, and staff turnover can impact repeat consumers and also negatively influence future profits. One essential point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Just how might the local average household income influence future earnings potential?