Business Overview

This modern appliance store has customer orders waiting to be delivered that total about $4M in future revenues. The business serves both consumers and contractors in a growing community. Offerings include GE, Kitchenaid, Maytag, Sub Zero, Wolf, Thermador and many others with sales representing about 90% of revenue and service about 10%. Brand new facility built in 2016 consisting of 7,980 square feet which includes 3,500 square feet of modern showroom space and good parking. A second warehouse was also built in 2018 adding 1,520 more square feet. Contractor sales vs retail is about 75% to 25%. Business has a good staff including a store manager that affords the owner time away.

Financial

  • Asking Price: $999,000
  • Cash Flow: $239,930
  • Gross Revenue: $6,565,963
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1981

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:7,980
  • Lot Size:N/A
  • Total Number of Employees:17
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

New store built in 2016, consisting of 7,980 square feet, 3,500 of which is a modern showroom. Good parking for customers, a superb sales desk and parts counter and of course, full heating and air conditioning. The business also utilizes another 1,520 square foot warehouse in a nearby industrial park. Open 8:30 to 5:30 Monday through Friday and 9:00 to 1:00 on Saturdays. Seller owns the facility and will lease to Buyer.

Is Support & Training Included:

Negotiable

Purpose For Selling:

Retirement

Additional Info

The venture was established in 1981, making the business 41 years old.

The business has 17 employees and resides in a building with estimated square footage of 7,980 sq ft.
The building is leased by the business for $13,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell operating businesses. However, the real factor vs the one they say to you may be 2 absolutely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is very essential that you not count absolutely on a seller's word, yet rather, use the seller's solution along with your total due diligence. This will repaint a more realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that profit margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract brand-new clients? Often times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Certain aspects such as brand-new competition growing up around the location, road building, as well as staff turn over can impact repeat clients as well as adversely affect future earnings. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the higher the possibility to develop a returning consumer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the regional mean home earnings effect future earnings prospects?