Business Overview

This flower shop has been in business for decades and is very well known in the area. The owner is a very sharp business person and will be a fantastic mentor for anyone wanting to get involved in the business. The owner is not working but just a few days per month and has a full-time manager in place. We have relationships with banks that can do all the SBA work for you!

NOTE: The property is also available (appraised at $400K) and can be combined with the business.

Financial

  • Asking Price: $245,000
  • Cash Flow: $101,466
  • Gross Revenue: $705,904
  • EBITDA: $68,927
  • FF&E: $10,000
  • Inventory: $8,500
  • Inventory Included: N/A
  • Established: 1985

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

As much as necessary

Purpose For Selling:

Retirement

Additional Info

The business was founded in 1985, making the business 37 years old.
The deal shall not include inventory valued at $8,500*, which ins't included in the requested price.

The business has 7 employees and is situated in a building with approx. square footage of 2,500 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell companies. However, the genuine reason and the one they tell you may be 2 completely different things. For instance, they might say "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competitors, current reduction in revenues, or an array of other reasons. This is why it is very crucial that you not count completely on a vendor's word, yet rather, use the vendor's answer together with your general due diligence. This will paint a much more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that earnings margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in new customers? Many times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific aspects such as brand-new competition sprouting up around the location, road building, and staff turnover can influence repeat customers and also negatively influence future earnings. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the greater the opportunity to construct a returning client base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional median house income effect future revenue prospects?