Business Overview

RVA Business Brokers is pleased to offer this established Richmond Va. Based Appointment Only Flooring Retailer to the Market.

Before you is an incredible opportunity to purchase a highly reputable, second-generation family Flooring Company serving Henrico, Richmond, and Chesterfield counties, VA.

Established in 1959, the Company is a legacy in the community with 4.7 stars on Google, and 5 stars on both Houzz and Angie. They are always the first referral from interior designers and past clients, homeowners.

The million-dollar business offers carpets, hard surface flooring, rugs, installation, on-site binding, and more.

The Business serves the mid and upper income brackets and outperforms its competitors with their high-touch customer service, exceptional quality, honest pricing, and installation services.

The Business pivoted during the pandemic to a 4 day-a- week appointment-only model which has proven popular with their higher income demographics

Business rebounded to $1,142,945 in 2021, which is 1% less than the pre-pandemic $1,155,964 revenue of 2019.

This is an opportunity for growth. The Seller’s retirement is the perfect time to advertise, build and internet and social media presence, approach new vendors and client partnerships with interior designers, and more. Growth is only limited by your imagination.

Revenue is projected to reach $1,200,000 in 2022.

Investment Highlights: Asking Price: $750,000

 22% Average Cash Flow

 $2,000 Average sale value

 Completes ~600 jobs per year

 Tremendous Room for GROWTH!

Exceptional reputation with clients and vendor partners. An exclusive dealer for Shaw
Flooring, Network and Mohawk Edge. High-quality materials with exceptional customer service.

2021 Gross Sales: $1,142,945 2021
Seller’s Discretionary Earnings: $269,650

2021 Gross Sales: $1,142,945 2021
Seller’s Discretionary Earnings: $269,650

2020 (Covid) Gross Sales: $991,803 2020 (Covid)
Seller’s Discretionary Earnings: $212,742

Financial

  • Asking Price: $750,000
  • Cash Flow: $260,000
  • Gross Revenue: $1,200,000
  • EBITDA: N/A
  • FF&E: $40,000
  • Inventory: $50,000
  • Inventory Included: N/A
  • Established: 1959

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:6,000
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

6,000 sq. ft. Showroom, offices, warehouse, workroom

Is Support & Training Included:

Owner will supply necessary training as negotiated in contract

Purpose For Selling:

Retirement

Pros and Cons:

We directly competes against Coston Floors and Wertz Decorating. Our competitive advantage comes from it's concierge service, extensive product lines, and product knowledge. Quality, value, service, installation staff, and custom work set House of Carpet apart from its competitors. Preferred pricing and buying power with long standing vendor relationships, many of which started in 1959 with the business, are another advantage over its competitors.

Opportunities and Growth:

There is immense room for growth with our company - Explore more hard surface products and tile - Expand workroom services - This will require an additional skilled person - Increase showroom hours and days - Develop a broader internet presence - Add social media accounts - Be more proactive in securing and using business development funds from manufacturers - Approach and build relationships with interior designers - Upgrade order entry technology - The Company has been using Gunn Flooring Systems since 1990 - The Seller does not enter anything into QuickBooks. A computer savvy Buyer can reduce professional fees by taking bookkeeping responsibilities in house.

Additional Info

The company was founded in 1959, making the business 63 years old.
The sale won't include inventory valued at $50,000*, which ins't included in the suggested price.

The business has 4 employees and resides in a building with approx. square footage of 6,000 sq ft.
The real estate is leased by the business for $2,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell businesses. Nonetheless, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be justifications to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a range of various other reasons. This is why it is really essential that you not rely entirely on a vendor's word, however rather, make use of the seller's response combined with your general due diligence. This will paint an extra sensible picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too small. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new customers? Often times, companies have repeat customers, which develop the core of their everyday profits. Certain variables such as brand-new competition sprouting up around the location, road building and construction, and also personnel turn over can affect repeat consumers and negatively influence future incomes. One essential point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning client base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median household earnings impact future earnings prospects?