Listing ID: 77614
This dominate player in the home furnishing space has made their mark in Orange County. This company offer clients a simple way to order U.S, made furniture, mostly sofa’s, in many styles, and fabrics. They offer a world class customer service experience, that why they have so many happy customers.
All 4 location are in the Orange County area.
Professionally run company has verifiable books and records. Seller only oversees the business, this company is professionally run by competent staff.
Gross Revenue 2019 $3.5 Million, 2020 $3.8 Million, 2021 $5.6 Million
January 2022- Record month!
SBA Approved Buyer needs $658,000 cash down
- Asking Price: $3,990,000
- Cash Flow: $560,216
- Gross Revenue: $5,622,769
- EBITDA: $263,373
- FF&E: N/A
- Inventory: $400,000
- Inventory Included: Yes
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:25
- Furniture, Fixtures and Equipment:N/A
This business has 4 locations. Broker will assist in getting lease assignment, extensions and new leases when appropriate.
Seller will provide a reasonable training period and remain available as a consultant for the buyer as needed.
Potential move of the state.
This company has gained the trust of the community to produce quality workmanship at a fair price & reasonable Leadtime.
The seller only opened the last store last year.
The venture was established in 2000, making the business 22 years old.
The deal will include inventory valued at $400,000, which is included in the requested price.
The business has 25 employees and is situated in a building with approx. square footage of N/A sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they might say "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of other factors. This is why it is extremely vital that you not rely totally on a seller's word, yet rather, use the seller's response together with your overall due diligence. This will repaint a much more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover things such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that profit margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new clients? Often times, businesses have repeat consumers, which create the core of their daily revenues. Specific aspects such as brand-new competitors sprouting up around the area, roadway building and construction, and also employee turnover can influence repeat customers and also negatively impact future incomes. One important point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the possibility to develop a returning customer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood median house earnings effect future revenue potential?