Business Overview

Outstanding Bridal & Formal Design Studio and Shop. More than 3 decades in the business (international fashion expertise). Prominent prestigious location. On-site seamstress that provides professional service for not only this shop but nearly all the major competitors in the area (outstanding revenue stream). Solid book of business with many of the top dress designers as suppliers. Tremendous inventory which draws clients from 100’s of miles away. The shop name has drawn clients for generations (for Formals, Proms, After Six, Pageants, Wedding Dresses and more – repeat customers). Tuxedo Rentals also provide a lucrative revenue stream. Solid sustainable financial performance. This business markets and sales “old school” and can achieve even more with increased contemporary marketing (social media). Books and records excellently maintained (hard copy). Present owners looking to retire but could remain with new owner to capitalize on the historic name and reputation of the current owner.

Financial

  • Asking Price: $275,000
  • Cash Flow: $110,039
  • Gross Revenue: $281,472
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $250,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The transaction does include inventory valued at $250,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell operating businesses. However, the true factor and the one they say to you might be 2 entirely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of various other factors. This is why it is really essential that you not depend totally on a vendor's word, but rather, make use of the vendor's answer along with your general due diligence. This will repaint a much more practical picture of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can suggest that profit margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new clients? Many times, companies have repeat customers, which form the core of their day-to-day revenues. Particular variables such as brand-new competition sprouting up around the location, road building and construction, as well as staff turn over can affect repeat customers and negatively influence future profits. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the greater the chance to build a returning client base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the local mean house income effect future income potential?