Listing ID: 78769
This profitable retail flooring business has a history of success and growth. Sales are steady year-round with some cyclical fluctuation. Revenues have seen steady growth over recent years, with that growth accelerating from 2019 to 2020. The company sells and installs all types of flooring and related goods & services. The customer base is primarily residential, and the business serves a market that has well above average household income. The company has an excellent team of experienced staff.
- Asking Price: $550,000
- Cash Flow: $250,000
- Gross Revenue: $3,275,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $80,000
- Inventory Included: N/A
- Established: 1990
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:17,500
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
The business’s showroom is spacious, has an efficient layout, is well lit and is meticulously kept. Product samples are regularly updated to stay up with trends, providing for opportunity to upsell. The facility includes on-site warehouse and production space. There is more than adequate parking and room to expand. The location is convenient, within 25 miles of approximately 30% of Maine’s total population, and on a well-travelled road. The real estate, priced separately, is part of the sale.
Seller will provide transition training for a new owner.
Owners’ desire to focus on other pursuits.
The business serves a geographic market that is both strong (median income 20% > State average) and growing (sales of primary product line estimated to grow 20% over the next 5 years), providing an attractive opportunity for future revenue growth. The competitive landscape is split between the big box stores and smaller independent retailers. The company is successful because it provides customized goods and services not generally available from competitors, ensuring that the business’s customers get a completed project they are happy with.
Current ownership believes revenues, and particularly profits, could be increased in a number of ways, including: a) more sophisticated pricing strategies to better align the company’s goods & services with current market pricing; b) the addition of an outside sales professional to target the professional builder segment; c) updated technological systems to increase efficiencies, particularly in regards to job estimating; and d) the development of a more robust marketing plan.
The venture was established in 1990, making the business 32 years old.
The sale doesn't include inventory valued at $80,000*, which ins't included in the asking price.
The company has 15 FT employees and is situated in a building with estimated square footage of 17,500 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the real reason and the one they tell you might be 2 entirely different things. For instance, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competition, current reduction in profits, or a range of other factors. This is why it is very essential that you not count entirely on a vendor's word, yet instead, utilize the seller's solution together with your total due diligence. This will repaint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover points such as stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new clients? Many times, businesses have repeat customers, which form the core of their day-to-day profits. Specific factors such as new competitors growing up around the location, road building, and employee turn over can impact repeat customers and also negatively affect future profits. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the chance to build a returning consumer base. A last idea is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Just how might the regional median household earnings impact future earnings prospects?