Listing ID: 71482
Established two location furniture retailer. Full year 2021 sales projected to exceed $3.1 million versus $2,563,000 in 2020. Adjusted earnings in 2021 projected at $341,000.
The outlet store concept is a high demand segment of the retail furniture industry.
This listed business is a match with the preferred target size for an outlet store.
Sales composition is:
50% living room
20% dining room
16,000 SF main showroom and separate 8,000 SF showroom.
Located across from busy new Municipal Government offices near large lake.
7,000 SF warehouse located ten minutes away. Majority of deliveries via third party delivery company. Store has truck for select local deliveries.
This is an above average financial performer in the retail furniture industry. Well branded. Please contact us for a detailed Executive Summary on this business.
Price includes $150,000 inventory plus other assets. Additional inventory available at cost.
High quality financial statements.
Who should buy this business?
*Strategic Buyer seeking expansion
*High net worth seeking cash flow from a branded established business
*Buyer targeting multiple family member employment opportunities.
- Asking Price: $1,275,000
- Cash Flow: $341,000
- Gross Revenue: $3,164,714
- EBITDA: N/A
- FF&E: N/A
- Inventory: $150,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
Two locations each with two stories. Main outlet store located next to busy Town Hall and Municipal offices. Over 100 parking spaces.
Two weeks equivalent for management transition. Opportunity for owners to stay on via a longer consulting agreement subject to definitive legal agreement.
Review delivery pricing. Launch on line business division. Add a standalone "sofa center" for mattress sales.
The deal shall include inventory valued at $150,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nevertheless, the real factor and the one they say to you might be 2 totally different things. As an example, they may claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, recent reduction in profits, or an array of various other factors. This is why it is extremely important that you not depend completely on a vendor's word, yet rather, utilize the seller's solution along with your overall due diligence. This will paint an extra reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money with the purpose of covering things such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new customers? Most times, businesses have repeat consumers, which create the core of their everyday revenues. Specific aspects such as brand-new competition growing up around the area, road construction, as well as employee turnover can influence repeat clients as well as negatively influence future profits. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the possibility to build a returning client base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the local mean family earnings impact future revenue potential?