Business Overview

This is a business that offers the buyer a chance to live the mountain-town life and enjoy a substantial income and extra free-time in the off-season. The sellers have raised their family in the Vail Valley and are ready to retire and pass this great business on to another family looking for the kind of business that will provide a comfortable living and a sane lifestyle.

From designer apparel and accessories to leathers and shearlings, some of the finest clothing in the world and a great customer base with steady traffic of desirable new customers are the foundations of this 35-year old business. This retailer offers the finest and most exclusive lifestyle brands to a discerning and affluent client base that shop multiple times per year. Returning part-time residents and affluent international visitors provide a steady revenue stream derived from the sale of high-end branded goods at excellent margins. The facilities are modern and have been recently remodeled. Leases are in place for long term business in some of the most productive retail locations available in the Colorado Rockies.

Potential purchasers should note that the asking price excludes inventory. “Cash Flow” referred to is Seller’s Discretionary Earnings.

Seller is responsible for buying, hiring and marketing as well as supervising the managers of each location. Seller is not involved with day-to-day floor operations.

Since Covid-19 vaccinations have been widely available sales have returned to normal levels and beyond with 2021 being a record year.

Please Note: Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the resources to complete a transaction of this size before additional confidential information will be provided.

Financial

  • Asking Price: $700,000
  • Cash Flow: $360,000
  • Gross Revenue: $2,200,000
  • EBITDA: N/A
  • FF&E: $500,000
  • Inventory: $500,000
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

Leased. Lease assignment to buyer to be accepted by Land Lord as part of purchase conditions.

Is Support & Training Included:

Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations. Seller would be open to a compensated role for a longer term if of interest to the Buyer.

Purpose For Selling:

Retirement.

Pros and Cons:

There are other retailers of premium goods that serve these markets. The customer base is also very affluent and travels widely to other locations where high-end shopping is available.

Opportunities and Growth:

It would be possible to open additional locations in other shopping districts as well as in other resorts or to negotiate larger square footages with the Land Lord in the future.

Additional Info

The sale doesn't include inventory valued at $500,000*, which ins't included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a variety of various other reasons. This is why it is really essential that you not depend completely on a seller's word, yet rather, make use of the seller's solution together with your general due diligence. This will repaint a much more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover items such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that revenue margins are too tight. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in new consumers? Often times, companies have repeat clients, which create the core of their day-to-day revenues. Certain aspects such as new competition sprouting up around the area, road building, and personnel turnover can impact repeat clients and negatively influence future revenues. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the greater the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local average home earnings impact future income potential?