Listing ID: 73428
Home-town furniture store that is family owned and operated. Neighborhood furniture retail store in a small town setting. This second generation family business utilizes a low-pressure atmosphere and pays attention to customer service and satisfaction. You’ll never be approached by a stream of commission-hungry sales staff.
In the store, you will find a wide selection of gorgeous home furnishings to match your style, from the formal living room and dining room to casual entertaining and dining, bedrooms, occasional tables and chairs, accessories and lighting, mattresses and more.
There are three floors to choose from for a wide selection of mattresses and furniture.
- Asking Price: $1,825,000
- Cash Flow: $234,000
- Gross Revenue: $1,113,000
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $400,000
- Inventory Included: Yes
- Established: 1954
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:54,950
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Whatever is required
The venture was founded in 1954, making the business 68 years old.
The transaction will include inventory valued at $400,000, which is included in the suggested price.
The company has 6.5 employees and is situated in a building with estimated square footage of 54,950 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. Nonetheless, the real reason vs the one they tell you may be 2 totally different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of other factors. This is why it is really crucial that you not count totally on a vendor's word, but rather, utilize the vendor's solution combined with your total due diligence. This will repaint an extra realistic image of the business's existing 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. Numerous operating businesses take out loans in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can mean that profit margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new clients? Many times, businesses have repeat consumers, which develop the core of their everyday revenues. Specific aspects such as new competition sprouting up around the area, road building and construction, and also employee turnover can impact repeat clients and adversely affect future profits. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional median home earnings impact future earnings potential?