Listing ID: 70156
A family owned fabric and design business founded in Knoxville over eighty years ago is now for sale. The company offers a wide range of special services that allow a client to coordinate all their decorating needs.
The business offers a wide range of special services that include:
The business has an experienced, professional team and a vast customer base with an excellent reputation in the industry. Business is performing at a high level the past few years with annual sales over $800K and cashflow of nearly $200K. The owners are ready to help transition to the right buyer and retire.
- Asking Price: $395,000
- Cash Flow: $198,857
- Gross Revenue: $809,818
- EBITDA: N/A
- FF&E: N/A
- Inventory: $180,000
- Inventory Included: Yes
- Established: N/A
Business is located in a prime retail location. Well established so clients are familiar with the business but also situated to attract drive-by business.
No other companies as established as this business with the history and reputation in town like this one.
To grow the business, add a sales or commission based team member to drive more revenue. Also, there is opportunity to attract more clients with an improved website, social media strategy, online sales, etc.
The transaction will include inventory valued at $180,000, which is included in the requested price.
The building is leased by the business for $6,052 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 entirely different things. For instance, they might state "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or a variety of various other factors. This is why it is extremely essential that you not count absolutely on a seller's word, however rather, make use of the seller's response in conjunction with your overall due diligence. This will paint a more practical image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that revenue margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new customers? Often times, operating businesses have repeat customers, which create the core of their everyday profits. Certain aspects such as new competitors sprouting up around the location, road building, and staff turn over can affect repeat clients and adversely influence future earnings. One essential point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the better the possibility to construct a returning client base. A final idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional median house earnings effect future income potential?