Business Overview

Manufacturer and Distributor of Luxury Textiles, Price $615,000:

Company designs, manufactures, imports and distributes, luxury textiles sold to design firms and designers; stagers and developers; and big box home furnishing retailers. The company also private labels for catalogs, retail stores and the hospitality industry. Products include ready-made custom draperies, table runners, bedding, pillows, drapery hardware, etc. Revenues through June 30, 2021 were $657,844 with an SDE of $206,531 for the first six month period. Multiple locations.

Financial

  • Asking Price: $615,000
  • Cash Flow: $91,319
  • Gross Revenue: $850,447
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $357,877
  • Inventory Included: Yes
  • Established: 1994

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Multiple Locations - leased

Is Support & Training Included:

2-4 weeks

Purpose For Selling:

Retirement

Additional Info

The venture was started in 1994, making the business 28 years old.
The sale shall include inventory valued at $357,877, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell operating businesses. Nonetheless, the real factor vs the one they say to you may be 2 absolutely different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of other reasons. This is why it is extremely important that you not depend completely on a seller's word, but instead, utilize the vendor's answer in conjunction with your general due diligence. This will repaint a much more reasonable picture of the business's current situation.

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. Many operating businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too small. Many businesses come under 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 think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new clients? Often times, businesses have repeat customers, which develop the core of their daily profits. Certain aspects such as new competitors growing up around the area, road building and construction, as well as staff turnover can influence repeat customers as well as adversely impact future earnings. One crucial point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business often, the better the possibility to build a returning client base. A final thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? How might the neighborhood average family earnings impact future income potential?