Listing ID: 69930
This is a great opportunity for someone who appreciates preserving the old and making it like new again. One of the region’s most notable full service furniture restoration companies, this Company provides the best in quality furniture refinishing, upholstery, and custom wood craftsmanship. Throughout its tenure, the Company has been known for the quality of its work across the wide spectrum of furniture repair and restoration. The Company has given its valued customers quality and dependable service for more than 50 years of experience.
- Asking Price: $385,000
- Cash Flow: $170,306
- Gross Revenue: $449,057
- EBITDA: N/A
- FF&E: $121,404
- Inventory: N/A
- Inventory Included: N/A
- Established: 1963
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
With over 8,500 square feet, this Company's shop consists of two buildings and provides room to organize and execute proper restorations and repairs.
Will train for 4 weeks @ $0 cost. The Company provides a wide range of furniture repair and restoration services. The Company's employees specialize in a variety of services including furniture making, furniture repair, finishing, upholstery, stripping and sanding. Therefore, specialized furniture repair knowledge is not a requirement for a prospective buyer. However, some understanding of craftsmanship would be helpful.
The owner and his wife are retiring.
According to industry research reports, the Furniture Repair and Re-upholstery industry is expected to experience an increase in revenue in 2021 as economic activity begins to recover from the effects of the coronavirus pandemic (IBISWorld). Nationally, the industry is highly fragmented.
As mentioned, The Company currently performs a limited amount of marketing beyond the Company's social media presence. This creates an opportunity to expand through various marketing channels. The Company's Instagram and Facebook accounts are well-maintained but there is also a potential to increase the social media following. Additionally, there is the potential for a new owner to expand the business into the retail space.
The business was established in 1963, making the business 59 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. However, the genuine factor and the one they tell you may be 2 absolutely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competitors, current reduction in incomes, or an array of other factors. This is why it is extremely important that you not rely entirely on a seller's word, but rather, utilize the vendor's answer combined with your overall due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover items such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that earnings margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new consumers? Often times, operating businesses have repeat customers, which form the core of their daily profits. Specific elements such as new competition growing up around the location, roadway building, as well as employee turnover can influence repeat clients and negatively influence future profits. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Exactly how might the local average household income impact future revenue potential?