Business Overview

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BUSINESS SUMMARY:

Founded in 2002, this 20-year-old Virginia based company, operates 12 Sales/Leasing and retail consumer products stores in Virginia and North Carolina under three sperate entities.

One of the Company’s entities operates nine locations that are strategically located in small towns with little and or no competition operated in Virginia. The Company’s second entity has two locations; these are a mixture of a Sales/Leasing and retail business operated in Virginia. The Company’s third entity operates one location that is based out of North Carolina; this business is a retail operation with low overhead.

In the leasing business, the Company offers an alternative path to ownership for individuals who do not have the means to pay cash or cannot qualify for traditional financing. The Company’s primary differentiators are that it is a locally owned business, staffed by caring employees with an unwavering commitment to excellent customer service and purchase satisfaction. The Company’s employees have over 370 years’ experience in the lease-to-own industry. The Company enjoys an extremely high rate of repeat and referral business.

INVESTMENT APPEAL

• Stable Longstanding Business: The Company has been around for 20 years and is highly reputable and well known in the industry. The Company enjoys 80% rate of repeat business and has 29,450 active accounts.

• Management Will Foster Transition: Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.

• Superior Name and Reputation: The Company enjoys a long-standing 20-year reputation for quality product, service, and superior reliability. That is why it enjoys a high rate of repeat and referral business.

• Strong Supplier Relationships: The Company represents many well-known furniture, appliance, and mattress brands, and have strong and longstanding relationships with them.

• Strong Recurring Revenue: More than 50% of the Company’s revenue is derived from lease-to-own sale. As the customers pay weekly or monthly, it provides steady source of reoccurring income for the Company.

• Easy-To-Replicate, Standardized Growth Formula: With 12 operating locations across Virginia and North Carolina, the Company has a proven formula for success which can be easily replicated in any new stores opened in other markets. The Company’s business model is easily implemented, fiscally sound and operationally stable.

• Outstanding Growth Opportunities: There exist several opportunities for the Company to significantly increase revenue and profit, including leveraging the Company’s proven reputation to pursue and penetrate new and existing markets. These opportunities are easily attainable given the appropriate investments in capital and human resources.

• High-Caliber and High-Tenured Staff: The Company fosters a workplace where it’s extremely experienced and talented personnel are able to thrive and grow, and therefore remain long term.

• Diversified Customer Base: No single customer accounted for 1.0% or more of revenue during the historical period. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account.

• Strong Historical Sales Growth: Historical sales have grown from $5,169,000 in 2018 to $6,545,000 in the fiscal year ending December 31, 2020, representing a compound annual growth rate of 12.5%. Sales have grown consistently year-over-year in the historical period.

• Strong Earnings & Margins: The Company experienced strong EBITDA margin over the historical period, averaging 38.0%.

Financial

  • Asking Price: $6,999,999
  • Cash Flow: $3,515,891
  • Gross Revenue: $6,500,000
  • EBITDA: $3,515,891
  • 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:76
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates 12 Sales/Leasing and retail consumer products stores in Virginia and North Carolina under three sperate entities.

Is Support & Training Included:

The Seller is proud of the business they've built. Their primary goal is to make sure the new Buyer is successful. Hence, they will stay on as long as the Buyer needs them.

Purpose For Selling:

Retirement

Additional Info

The company was established in 2002, making the business 20 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell businesses. However, the true factor and the one they say to you may be 2 absolutely different things. For instance, they might state "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, current reduction in profits, or a range of other factors. This is why it is extremely important that you not count entirely on a vendor's word, however rather, utilize the vendor's response together with your general due diligence. This will paint a more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses finance loans in order to cover things like stock, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments 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 satisfied or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new consumers? Often times, businesses have repeat clients, which develop the core of their daily revenues. Certain elements such as brand-new competition sprouting up around the area, roadway construction, as well as employee turnover can influence repeat customers and adversely impact future profits. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the better the chance to construct a returning consumer base. A final thought is the basic area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood average home income effect future income prospects?