Listing ID: 73470
This Ohio-based florist, a family business, has been delighting customers for more than 50 years. The second-generation owner of the business is retiring, and is looking for a savvy investor or owner-operator to continue the firm’s long tradition of service.
The firm has four employees, including floral designers. So the owner-operator or the investor doesn’t have to have floral design interest or experience. A hands-off investor could hire a manager to work in the business and still have adequate cash flow to cover borrowing costs and produce a reasonable return.
The firm’s friendly and knowledgeable staff is ready to assist when its customers need flowers delivered locally or anywhere in the world. For its customers’ convenience, the shop also offers daily delivery service to local hospitals and funeral homes. Whatever the occasion, the business’ talented designers create beautiful, eye-catching fresh or silk floral arrangements customized for each customer. The business offers traditional and contemporary floral design styles that are appropriate for birthdays, anniversaries, get well, new baby, sympathy, holidays or just because. The business has contracts with local churches, funeral homes and gets frequent referrals for weddings and special events of all sizes. Besides flowers, the business also offers green plants, blooming plants and dish gardens for a gift that adds life to any room or office. It also offers gifts for any age or occasion, including plush stuffed animals, balloon bouquets, gift baskets of fruit and other goodies, candy & chocolates, silk arrangements, baby items, home décor, scented candles and more.
- Asking Price: $425,000
- Cash Flow: $157,391
- Gross Revenue: $490,216
- EBITDA: N/A
- FF&E: $182,000
- Inventory: $2,500
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
0.4-acre parcel with less than 10,000-square-foot building. The building is available for purchase for $125,000. The business can be acquired without the real estate. The owner is willing to enter into a 10-year lease for the building as part of the sale transaction. The real estate is priced at a typical capitalization rate for a neighborhood retail building.
Owner willing to train, and provide transition consulting.
The floral industry is a very interesting and creative business. A new owner would only be limited by imagination. The shop features these products: Fresh Cut Flowers, House Plants, Fruits & Gourmet Baskets, Balloon Bouquets, Dish Gardens, European Baskets, Traditional Style Funeral Arrangements, Mixed Floral Standing Sprays, Vase Arrangements, Elegant Roses, Fresh & Silk Arrangements and more. Most importantly, the shop specializes in making people smile.
The business had multiple shops when it was important for a florist to have brick-and-mortar presence. Now, customers are accustomed to ordering online, and so a single location makes sense. However, the opportunity to grow geographically remains as people typically want to support a “hometown florist,” and there is plenty of market share available by becoming that for a variety of neighborhoods and communities throughout its region.
The transaction will include inventory valued at $2,500, which is included in the suggested price.
The business has 4 employees and is situated in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nonetheless, the real reason vs the one they say to you might be 2 totally different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or a range of various other reasons. This is why it is very crucial that you not count entirely on a seller's word, but instead, make use of the vendor's answer together with your overall due diligence. This will paint an extra sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that profit margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Many times, businesses have repeat clients, which create the core of their day-to-day earnings. Specific aspects such as new competitors growing up around the location, road building, and employee turn over can affect repeat customers and also adversely affect future earnings. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the opportunity to build a returning customer base. A final thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the local average house earnings influence future revenue prospects?