Business Overview

One of the top furniture stores in the area with established supplier relationships including some with exclusivity. Majority of sales are American made products.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: $665,604
  • Gross Revenue: $2,629,128
  • EBITDA: $665,604
  • FF&E: N/A
  • Inventory: $300,000
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:25,000
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This strong independent furniture store brand is a cash cow. Large selection of sofas, recliners, mattresses, and dining inventory. Caters well to the mainstream customer segment, which makes up almost all of the local market. Well-trained management in place will make the ownership transition easy. Reasonably lean staff of 8 can handle all business operations. Real estate owned by seller. Lease terms offered at $11/sf.

Is Support & Training Included:

Up to 4 weeks as necessary.

Purpose For Selling:

Focus on personal life

Pros and Cons:

One of the top performers in the local competitive set

Opportunities and Growth:

Clear opportunities to expand breadth of categories with accessories, art, electronics, etc. Can also include more upscale furniture. A strong marketing push would undoubtedly shift the local market share.

Additional Info

The business was started in 2003, making the business 19 years old.
The deal shall not include inventory valued at $300,000*, which ins't included in the suggested price.

The company has 8 employees and is situated in a building with approx. square footage of 25,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell operating businesses. However, the genuine factor vs the one they tell you might be 2 completely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a variety of other reasons. This is why it is really crucial that you not count absolutely on a vendor's word, but rather, make use of the seller's response together with your overall due diligence. This will paint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover points such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that revenue margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract brand-new customers? Often times, operating businesses have repeat clients, which develop the core of their daily revenues. Particular factors such as new competition sprouting up around the location, road building and construction, as well as staff turn over can affect repeat clients and also adversely affect future profits. One crucial thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? How might the regional mean home income influence future revenue prospects?