Business Overview

This acquisition opportunity is for a well-established, highly reputable Retail Flooring Sales business that serves the San Francisco Bay Area. It is located within 30 minutes of SFO Airport. The company sells flooring to retail customers and commercial clients. The full-time owner engages clients with flooring sales support. The top 3 customers normally account for less than 5% of the business. The top supplier normally represents about 20% of the business.

A buyer for this business should be (or hire) a skilled customer salesperson with retail management experience. The scalable business model with few employees, can be readily scaled by an energetic buyer to other metro areas to scale earnings accordingly.

The relocating owners will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business.

Financial

  • Asking Price: $5,495,000
  • Cash Flow: $1,500,000
  • Gross Revenue: $7,200,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $700,000
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:10,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Training time to be negotiated.

Purpose For Selling:

Sellers are relocating

Additional Info

The venture was started in 2010, making the business 12 years old.
The deal won't include inventory valued at $700,000*, which ins't included in the asking price.

The company has 3 FTE employees and is located in a building with approx. square footage of 10,000 sq ft.
The real estate is leased by the company for $16,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. However, the true factor vs the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competition, recent decrease in profits, or a range of other reasons. This is why it is extremely vital that you not depend totally on a seller's word, but instead, utilize the vendor's response along with your total due diligence. This will repaint a more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points like supplies, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in brand-new consumers? Often times, companies have repeat clients, which create the core of their everyday earnings. Specific variables such as brand-new competition sprouting up around the area, road building, and also staff turn over can affect repeat clients and also adversely affect future earnings. One essential point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning customer base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood median household income influence future revenue potential?