Business Overview

In business since 2015, this mattress company is located in west Houston and specializes in the sale of mattresses, adjustable bases, furniture, and bedding accessories. This business has low overhead and can be operated on a flexible schedule.

The business for sale is located in a warehouse facility and occupies 3,000 square feet. There are two years left on the lease. The rent including CAM is only $3,000 per month.

This business is very profitable and currently has 2 employees that provide sales and delivery assistance. Per seller’s 2021 financials, revenues were $415,000 with $120,000 in seller discretionary earnings. The listing price includes FF&E of $18,000, Leasehold Improvements of $27,000, Inventory of $38,000, and $8,000 box truck. The owner wishes to retire and will provide two weeks of training to ensure a smooth transition.

This business is perfect for an owner-operator with basic selling skills that is looking for a simple and profitable business to operate. There is also the ability to expand by going into e-commerce if desired. The size of the mattress industry is estimated at $35 billion!

Financial

  • Asking Price: $245,000
  • Cash Flow: $120,000
  • Gross Revenue: $415,000
  • EBITDA: N/A
  • FF&E: $18,450
  • Inventory: $38,800
  • Inventory Included: Yes
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The company was established in 2015, making the business 7 years old.
The sale will include inventory valued at $38,800, which is included in the asking price.

The company has 2 employees and is situated in a building with disclosed square footage of 3,000 sq ft.
The real estate is leased by the business for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. However, the true factor vs the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be reasons to try to hide the reality of changing demographics, increased competitors, current reduction in incomes, or a variety of various other factors. This is why it is really important that you not count completely on a vendor's word, but instead, use the seller's solution in conjunction with your general due diligence. This will repaint a more sensible picture of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too thin. Numerous businesses fall into 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 take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new consumers? Many times, companies have repeat consumers, which create the core of their day-to-day profits. Particular factors such as brand-new competitors growing up around the location, road building, and employee turnover can influence repeat customers and also adversely impact future earnings. One important thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the opportunity to construct a returning client base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Exactly how might the local typical household earnings influence future income potential?