Listing ID: 72704
The Company provides new and like new business furniture along with complementary services to a broad range of customers. Comprehensive services facilitate customer acquisition and retention.
The Company has consistently high repeat sales and there is no customer concentration. The mix of new and used products serves customers changing needs and balances economic cycles. Sales of like-new used furniture have enabled the company to post strong results even in the weakest economic times.
This business is very scalable and has excellent expansion potential The business is rebounding strongly from the pandemic and maintained very good profitability through the pandemic.
Working capital requirements are modest due to favorable billing terms and low fixed costs. The fixed asset base is in great shape so there are negligible capital expenditure requirements for the purchaser.
- Asking Price: $595,000
- Cash Flow: $189,570
- Gross Revenue: $1,500,175
- EBITDA: N/A
- FF&E: $223,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:11,400
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
NNN $2,973, Leased facilities are centrally located to the Company’s serving area. Effective inventory management yields a secondary benefit of reduced warehouse space requirements. Furniture, Fixtures, & Equipment (FF&E): The assets are up-to-date and support future growth. Inventory: Low investment and rapid turnover. SBA approved. The Gross Revenue and Cash Flow amounts are shown for the first 11 months of 2021
Seller will transition the business according to the purchaser’s requirements. 4 weeks, 20 hours per week
Is modest and primarily local. The Company’s product mix and services make it an effective competitor.
Washington State’s Puget Sound region continues its fast-paced growth with more start-ups and companies moving in from out of the area along with growth from established companies. Construction is at record levels and the outlook remains strong. A strategic purchaser can leverage their existing resources and realize even greater profitability.
The venture was established in 2000, making the business 22 years old.
The company has 9 employees and is located in a building with estimated square footage of 11,400 sq ft.
The real estate is leased by the company for $505.08 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the true factor and the one they tell you may be 2 totally different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or an array of various other factors. This is why it is really crucial that you not count absolutely on a vendor's word, however instead, make use of the seller's response in conjunction with your general due diligence. This will repaint a more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new consumers? Most times, operating businesses have repeat clients, which develop the core of their day-to-day earnings. Specific elements such as brand-new competitors growing up around the location, roadway construction, as well as personnel turn over can affect repeat customers and also adversely affect future revenues. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the higher the opportunity to develop a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Just how might the local average house income effect future income prospects?