Listing ID: 76933
**IN ESCROW** Highly Profitable Dealership of Branded Portable Spas and Swim Spas in a prime location of Ventura County. This well priced, highly respected “Covid-Proof” dealership services a prime upper-end customer base from Ventura County to Santa Barbara County. Similar businesses in this space typically represent one line or manufacturer but this company is an approved dealer of multiple well-recognized manufacturers of high-quality spas and swim spas plus this company has other products including a profitable chemical and supply diversion as well as other services. This gives the company a competitive edge in being able to offer several options and price points to the customer on a spa or swim spa. The company generates revenue from several categories or divisions (spas – swim spas – accessories – chemicals – supplies) which helps diversify the company’s business model and provide consistent revenue and profits. The company has experienced year after year, consistent revenue and profits and demand is projected to be strong for years to come. Even during 2020 with Covid-19, reduced hours, limited marketing and the loss of road shows, and home shows events done in previous years, the company had strong sales and profitability due to the strong demand for these products. Operation costs have gone down which has helped increase profit margins. Year to date 2021 sales and profits are up significantly (averaging $270,000 +/- per month is gross sales). 2021 is on track to be an incredible year sales and profit-wise with gross revenue projected to be over $3M+ and cash flow to be over $350,000+ even with no roadshows or home shows and limited marketing effort. The company currently has approximately 150+/- units (spas and swim spas) sold and under contract with a typical 50% down deposits on hand. The balance is due and collected prior to shipment to the customer (company holds 100% of payment prior to final shipment) which helps with cash flow management. These units are typically delivered within 3-5 months depending on the manufacturer’s production schedule. Demands for these products are projected to be strong for years to come.
As per the seller, future growth will continue for many reasons including the fact that this product is widely used for Hydro-Therapy and known to help the aging population with ailments and illnesses. The overall population continues to improve their homes, and this is a less expensive and easier way to enjoy a spa or swim spa compared to an inground pool or spa that could take several months to install and cost 5 times + more. As per the seller, several publications indicate that this industry and its products should continue to be in strong demand for many years to come.
There are several other growth opportunities that the seller will discuss including opening additional, smaller satellite offices. This business has excellent books and records including tax returns. This business has been pre-qualified for an SBA loan with 10% down for a qualified buyer. The purchase price on this business includes a large list of furniture, fixtures, and equipment and the facility is First Class. Inventory of spas on hand, chemicals, and supplies is approximately $75,000+/- at cost and will be included in the purchase price at closing. Seller is at retirement age but will consider staying on as a part-time sales rep or consultant for up to 6 months. This is a unique opportunity to own a highly respected, “Covid-Proof” business in an amazing area of California with excellent customer reviews and in a fun space that generates excellent profits with future growth.
Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or the Contact Seller button or email email@example.com to receive a confidentiality agreement and learn more about this opportunity or call Matt @ 818-999-9621.
- Asking Price: $1,250,000
- Cash Flow: $400,000
- Gross Revenue: $3,500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $75,000
- Inventory Included: Yes
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,700
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Seller will provide training at no cost to qualified
Seller is at retirement age
Seller to discuss
Seller to discuss
The company was established in 2000, making the business 22 years old.
The deal shall include inventory valued at $75,000, which is included in the requested price.
The business has 6 employees and resides in a building with estimated square footage of 6,700 sq ft.
The building is leased by the company for $6,700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. However, the true factor and the one they say to you might be 2 absolutely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of other factors. This is why it is extremely essential that you not rely totally on a vendor's word, yet instead, use the seller's response along with your total due diligence. This will paint an extra practical picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that profit margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be met or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Often times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Certain aspects such as brand-new competitors sprouting up around the location, roadway building, and personnel turnover can influence repeat clients and adversely affect future profits. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the opportunity to develop a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood typical home earnings effect future income potential?