Listing ID: 75118
This successfully operated 10+ year boutique floral company is positioned for continued and greater profitability as well as additional revenue lines. Confidential Information Memorandum (CIM) is available for review under NDA.
With COVID-19, company had a down year, yet came roaring back in 2021, with Q4 at ~$485K in booked events. Average income to Seller for past 5 years ranges from $200k-$366k.
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- Asking Price: $550,000
- Cash Flow: $366,270
- Gross Revenue: $1,048,637
- EBITDA: N/A
- FF&E: $95,831
- Inventory: $10,257
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,849
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Showroom, Office, Workroom +, Easy Access, Plenty of Parking
Seller to provide 2 weeks at 30 hours per week
The venture was started in 2010, making the business 12 years old.
The sale will include inventory valued at $10,257, which is included in the asking price.
The business has 8-15 employees and is situated in a building with disclosed square footage of 2,849 sq ft.
The real estate is leased by the business for $3,584.68 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. However, the true reason and the one they tell you may be 2 completely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a range of other reasons. This is why it is really important that you not rely absolutely on a seller's word, but instead, use the vendor's answer together with your overall due diligence. This will repaint a more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new consumers? Many times, operating businesses have repeat customers, which create the core of their everyday profits. Particular elements such as brand-new competition growing up around the location, roadway building and construction, and also employee turn over can impact repeat customers as well as adversely influence future profits. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? How might the regional mean household income influence future income prospects?