Listing ID: 69894
Business Overview
This well-established & lucrative floral and event business is one of the premiere operations in all of Arkansas. For over 20 years this business has been providing first-rate service to its clients with premium-quality and the freshest of flowers for any event, along with rental and event planning services. They provide flowers, gifts, rental items & other services for birthdays, house-warmings, weddings, anniversary parties and a host of other events. They provide delivery services within their market, and have travelled out-of-state to provide their services. This operation has one of the finest reputations in the industry. This is a turn-key, one-stop shop for all floral & event needs.
This business is a cash cow. While down in 2020 due to COVID, the business has rebounded fully and is on an upwards trajectory.
Financials:
Last 4-year AVG REVENUE is $1.49M!!!!
2021 revenue was up 35% from prior year! Cash flow was over $549,000!!!
4-year average Cash Flow is over $340,000!!
This business’s financials are well established and consistent from year to year.
This business is SBA 7(a) Eligible for financing – so a buyer can put 10% and reap a massive return on their down payment in year one!!!
Financial
- Asking Price: $880,000
- Cash Flow: $200,257
- Gross Revenue: $1,320,699
- EBITDA: N/A
- FF&E: N/A
- Inventory: $161,744
- Inventory Included: Yes
- Established: N/A
Other Business Ventures
Additional Info
The sale will include inventory valued at $161,744, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. However, the true reason vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, current decrease in earnings, or an array of various other reasons. This is why it is really important that you not count totally on a vendor's word, however instead, use the seller's solution in conjunction with your total due diligence. This will repaint a more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that profit margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new clients? Many times, companies have repeat customers, which develop the core of their day-to-day profits. Certain elements such as brand-new competitors sprouting up around the location, road building, and staff turnover can influence repeat clients and also negatively influence future incomes. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning consumer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local mean family earnings effect future earnings potential?
