Listing ID: 73518
This established flooring company has been servicing the community for over 16 years. Specializing in the highest fashions available & providing quality flooring, blinds & shades made right here in the USA!
Over the years the business has become the destination store in its area and has all 5-star Google reviews. The owner has built a brand that is synonymous with quality and is recognized as a leader in the flooring industry.
Aside from the required shut down for several months in 2020 by COVID-19, this business has proven to withstand the ups & downs of an unstable economy and continues to grow year over year – with more than $700,000 in sales in 2018, and sales north of $800,000 in 2019.
After reopening in mid-2020, the owner has picked up right where they left off and continues to service the community with the highest level of service & products, and a second to none installation team.
Do not miss out on this diamond in the rough, contact me today to learn more about this opportunity. This is a confidential listing and requires proof of funds, or fundability, along with a signed Non-Disclosure Agreement (NDA).
- Asking Price: $225,000
- Cash Flow: $51,200
- Gross Revenue: $479,030
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2005, making the business 17 years old.
The transaction shall include inventory valued at $5,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the real reason vs the one they say to you may be 2 absolutely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in incomes, or a range of various other factors. This is why it is very vital that you not count absolutely on a vendor's word, yet instead, utilize the seller's response together with your overall due diligence. This will paint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that earnings margins are too thin. Lots of businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new clients? Most times, businesses have repeat clients, which create the core of their daily profits. Specific variables such as brand-new competitors sprouting up around the location, roadway construction, and staff turnover can impact repeat customers and negatively influence future incomes. One crucial thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the possibility to develop a returning customer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median household earnings influence future earnings prospects?