Listing ID: 79142
Booming Party & Event Supplies Mega Store for Sale in Miami!
Incredible 50%+ sales increase in 2021 vs. 2020. 56% net income increase in 2020, during COVID!
This is a unique opportunity for an owner operator or investor, willing to make a solid entry or expand into this booming industry. This long-established Party Supplies Mega Store is the go-to place for everything related to parties in South Florida. With more than 6,000 items in 15,000 sf of store floor, this impressive retailer has become the dominant player in its area, with steady growth in sales and profits despite virtually no marketing efforts for several years.
There are lots of potential upsides and additional growth possibilities, like extended hours, opening on Sundays, online sales, social media, rentals, etc. After 35 years the owner wants to retire and will facilitate the transition for 4 weeks at no cost.
May qualify for a Visa.
$1,000,000 inventory is included with the sale.
- Asking Price: $3,800,000
- Cash Flow: $852,523
- Gross Revenue: $2,435,782
- EBITDA: N/A
- FF&E: $300,000
- Inventory: $1,000,000
- Inventory Included: Yes
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:15,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Seller provides training for 4 weeks with no cost.
The venture was established in 1986, making the business 36 years old.
The deal does include inventory valued at $1,000,000, which is included in the asking price.
The business has 6 employees and resides in a building with approx. square footage of 15,000 sq ft.
The real estate is leased by the company for $12,055 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the genuine reason and the one they tell you may be 2 totally different things. For instance, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or a range of other factors. This is why it is extremely important that you not rely entirely on a seller's word, yet instead, use the seller's answer combined with your overall due diligence. This will repaint a more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover items like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that revenue margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in brand-new clients? Most times, companies have repeat consumers, which develop the core of their daily profits. Certain aspects such as new competition growing up around the area, roadway construction, as well as staff turn over can affect repeat customers as well as adversely affect future revenues. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the local median home income effect future revenue potential?