Listing ID: 78764
Highly profitable floor covering retailer with protected products and a superb location. Margins are well above industry average due to efficient operations, exclusive products and, high-quality goods and services. This business represents a great opportunity for an owner/operator to build upon an efficient operation with a desirable location in an attractive market. The customer base is primarily residential, and there are immediate opportunities to grow revenue through expansion of product offerings and/or increasing sales to a substantial commercial customer market.
- Asking Price: $695,000
- Cash Flow: $482,500
- Gross Revenue: $1,500,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $60,000
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,800
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company’s facility is located in a spectacular location to attract and service its primary target market. The building was renovated in 2021, re-painted outside and inside, with new outside features and a repaved parking lot. The facility includes a small, but sufficient, warehouse.
Seller will provide transition training for a new owner.
Owners’ desire to focus on other pursuits.
The business features a number of desirable products, many of which enjoy some level of protection from being sold elsewhere in the local market. The company has a well-defined target market and focuses its efforts, from marketing to product offering to sales and service, on satisfying the demands of that customer base. The market for the company’s goods continues to grow steadily and likely will continue to do so for the foreseeable future given local demographic trends.
Current ownership has identified specific opportunities for future growth including specific product line expansion and targeted sales channel expansion.
The company was founded in 1993, making the business 29 years old.
The deal doesn't include inventory valued at $60,000*, which ins't included in the asking price.
The company has 2 FT / 0 PT employees and resides in a building with approx. square footage of 5,800 sq ft.
The building is leased by the business for $5,432.67 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. Nonetheless, the true factor and the one they say to you may be 2 absolutely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is very essential that you not rely completely on a seller's word, however instead, make use of the seller's answer along with your overall due diligence. This will paint a more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that earnings margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in new customers? Most times, companies have repeat customers, which form the core of their daily revenues. Particular variables such as brand-new competition growing up around the location, road building, and employee turnover can affect repeat consumers and also negatively affect future earnings. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the higher the chance to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the regional mean household income impact future earnings potential?