Business Overview

Business Description
Stone Fox Farm Creamery (SFFC) is a small, family run LLC established in 2009. SFFC specializes in making super premium, small batch ice cream made with locally sourced ingredients. SFFC is a “turn-key” business fully equipped with pasteurizers, ice cream/gelato machines, blast and walk-in freezer, mobile vending trailers, a pick-up truck, etc.
SFFC is staffed year-round by the current owners, and staffing is ramped up from June until mid-September. During the peak season, the work week averages 50-60 hours with the shop open daily from noon to 7:00 pm. SFFC hires approximately 5-10 part-time employees, staffing the shop and several mobile units. Additionally, SFFC distributes to 25 store accounts statewide with most locations receiving weekly deliveries. Winter months see greatly reduced hours (10-15 hours/week) with just 2-3 staff members.
Business Location
SFFC is located directly on Route 1 in Searsport, ME (just over the Stockton Springs town line) with mobile units serving the greater coastal region. The mobile units are also available for special events such as weddings, family reunions, corporate events, etc.
The current owners are looking to sell only the business at this point, but are open to other arrangements such as leasing or selling the property outright.
Marketing
With a strong social media presence, you can find SFFC on Facebook, Instagram, and Twitter. Additionally, their website has information about the company, upcoming events, and locations. The platforms are regularly updated.
Business Strengths
Despite only having been in business since 2009, SFFC prides themselves on their strong community reputation, the quality of their products, and their sourcing of local ingredients.
Following 2020, which was a universally challenging for the service/food industries, 2021 proved to be SFFC’s best year ever exceeding daily cash goals by $120K! This success has allowed the SFFC team to begin considering some exciting new ventures:
• Partnering with the University of Maine Dairy Barn wherein they would use the milk from the dairy barn to produce and sell 4 oz containers of ice cream on campus.
• Producing artisanal ice cream sandwiches to be sold in the Seasport shop and mobile units.
• Partnering with a local dispensary to produce and sell cannabis-infused ice cream.
• Expanding their footprint in Maine by increasing their wholesale accounts throughout the state (on target to triple in the upcoming year).

Recent Challenges
As with many seasonal/food-based businesses, reliable staffing remains a challenge particularly as the pandemic continues. The owners are also approaching retirement and looking to spend more time with family. Bottomline: there is significant growth potential to take this well-known and respected super-premium ice cream business to next level, regionally and even nationally.

Financial

  • Asking Price: $330,000
  • Cash Flow: N/A
  • Gross Revenue: $343,901
  • EBITDA: $118,965
  • FF&E: $121,800
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. Nevertheless, the genuine factor vs the one they tell you might be 2 totally different things. For instance, they might claim "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be justifications to try to hide the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is really vital that you not depend completely on a seller's word, however rather, utilize the seller's solution along with your total due diligence. This will paint a more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses finance loans in order to cover items like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that earnings margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new clients? Most times, businesses have repeat customers, which form the core of their everyday profits. Particular variables such as new competitors sprouting up around the location, road building, as well as employee turn over can influence repeat consumers and adversely influence future earnings. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the possibility to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the regional typical household income effect future earnings potential?