Business Overview

This unique business established for nearly 40 years provides high-end retail sewing and quilting products along with weekly online classes to a well-diversified customer base. The company thrived through the recent pandemic with increased sales and capturing more customers both locally and online. While YTD 2021 revenues are lower than previous years, profitability has increased with an experienced, trained staff in place allowing the owners to work only part-time. This company would make an ideal acquisition for an individual or a group of partners searching for an well managed business with different ways to grow using a hybrid of online and traditional retail marketing approaches. The owners are willing to fully train the new owner in the transition period (time negotiable) and SBA lending references are available upon request.

Financial

  • Asking Price: $850,000
  • Cash Flow: $313,464
  • Gross Revenue: $1,133,342
  • EBITDA: $313,464
  • FF&E: $76,000
  • Inventory: $167,000
  • Inventory Included: Yes
  • Established: 1980

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The business was started in 1980, making the business 42 years old.
The deal shall include inventory valued at $167,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. Nonetheless, the genuine factor and the one they say to you may be 2 absolutely different things. As an example, they might state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or an array of other reasons. This is why it is extremely vital that you not depend absolutely on a vendor's word, yet rather, make use of the seller's answer together with your overall due diligence. This will paint a much more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Remember that in some cases this can suggest that earnings margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new customers? Many times, businesses have repeat customers, which develop the core of their daily profits. Certain elements such as new competition growing up around the location, roadway construction, and also personnel turnover can influence repeat consumers and negatively affect future incomes. One crucial thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the chance to construct a returning client base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average home earnings impact future earnings potential?