Business Overview

This well-established Hawaiian apparel company boasts a variety of customer loved woman’s couture brands, each of which includes trendy tops and bottoms, dresses, sarongs and gift items. The company’s coveted 650 accounts are located throughout the state and include a virtual who’s who of Hawaii’s retailers. It hosts several brands it imports from Asia. It has commissioned sales representatives who attend Oahu based trade shows and provide island coverage.

Financial

  • Asking Price: $699,000
  • Cash Flow: $289,913
  • Gross Revenue: $1,076,333
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 1996

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,065
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This wholesale apparel company does not rely on its own retail presence, although they have a small showroom that produces. They also market direct to consumer via an Amazon store. A buyer may take it upon themselves to relocate the warehouse to elsewhere in the state. While a real estate lease or related assets will be included in the sale, all of the business’s furniture, fixtures, equipment and goodwill will be included. Approximately $200,000 in inventory will be sold at cost at close in addition to the asking price.

Is Support & Training Included:

3 Weeks at 20 hrs/wk

Purpose For Selling:

Personal

Pros and Cons:

While competition certainly exists in this popular apparel segment on the islands, this company has amassed a loyal following that frequents their largely non-tourist driven retailers and has decades of established clients and industry contacts.

Opportunities and Growth:

New operators will likely be happy to maintain the status quo within the island chain, but may wish to explore increasing their direct to consumer retail presence. They may also capitalize on the firm’s established Polynesian roots and expand into the South Pacific, Micronesia, Melanesia, Philippines or even on the U.S. mainland (where client demand has already been communicated!). In the past, the owners had been more active in attending trade shows and marketing themselves. It would be worthwhile for management to supplement sale representative’s efforts in these areas. New operators will likely be happy to maintain the status quo, but may wish to explore launching a male apparel line which may be very popular within the island chain or increasing their direct to consumer retail presence. They could even experiment with a fashion driven premium line, perhaps using ultra-premium materials. Alternately they may capitalize on the company’s established Polynesian roots and expand into the South Pacific, Micronesia, Melanesia, Philippines and especially the U.S. mainland. In the past, the owners had been more active in attending trade shows and marketing themselves. It may be worthwhile for management to supplement sale representative’s efforts in these areas, or to explore advertising in n more passive industry trade magazines, etc.

Additional Info

The venture was established in 1996, making the business 26 years old.
The sale won't include inventory valued at $200,000*, which ins't included in the asking price.

The company has 4 employees and resides in a building with approx. square footage of 4,065 sq ft.
The property is leased by the business for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. However, the true factor vs the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in earnings, or a variety of other factors. This is why it is very crucial that you not depend absolutely on a seller's word, yet rather, utilize the vendor's answer combined with your general due diligence. This will repaint an extra realistic image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that revenue margins are too thin. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new clients? Most times, operating businesses have repeat clients, which form the core of their day-to-day revenues. Particular factors such as brand-new competition growing up around the area, roadway building, and also employee turn over can influence repeat customers and also negatively impact future profits. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the better the possibility to construct a returning consumer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood typical home income effect future revenue potential?