Business Overview

This Atlanta-based business has a 30+ year history of success as a wholesaler of fabrics, wall coverings, furniture and accessories. The client base includes designers and architects that serve residential and commercial customers in the six state territory of NC, SC, GA, AL, TN and MS. On occasion, clients will visit the Atlanta showroom from other states in the Southeast. About 75 manufacturers and 12 categories of products are represented. And, in most cases, the business has the exclusive rights to sell a manufacturers’ products in their six state area.

Atlanta is a major hub for the design industry, and the business has achieved a long history of success in this very competitive marketplace by providing a one stop shopping environment for almost every designer need. The business offers a broad range of products from the average to the high price range that is second to none in the marketplace. Thousands of clients have been served over the years and about 2,000 are currently active. 50% of the clients generate repeat business and about 500 generate 25% of the revenue.

The owner had several years of design industry experience before acquiring the business from the founder, and this experience has served him well in growing the business to the current level of success. He has built a management team in which each staff member has been with the business for at least 5 to 25 years, and all sales staff have degrees in Design. Sales staff have the knowledge and experience to shop for their clients and often pull project schemes together for the client. This service was very beneficial when clients could not visit the showroom when it was closed during COVID or when a client did not have the resources to pull their jobs together.

The owner is forecasting annual sales of about $1.76 MM in the current fiscal year, which would be one of the best years in the business’s history. Sales have also remained strong through COVID and the challenges presented in the current economy.

Financial

  • Asking Price: $750,000
  • Cash Flow: $611,652
  • Gross Revenue: $1,760,000
  • EBITDA: N/A
  • FF&E: $48,000
  • Inventory: $80,000
  • Inventory Included: Yes
  • Established: 1984

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:11
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The home office and showroom location is ideal for serving the design and architecture industries in Atlanta and surrounding areas. Clients travel to the showroom with great frequency. The facility is a leased space of 15,750 square feet and only 1,000 square feet is used for storage and office space. Some inventory is stored in an off-site storage facility with 500 square feet of capacity.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. A Buyer needs to have business management, sales and/or marketing experience. People management skills needed include skills in the areas of managing employees, and relationships with manufacturers and clients. The owner would welcome the opportunity to stay engaged in the business for a long transition period if necessary to make sure the new owner is successful.

Purpose For Selling:

The owner wants to slow down and eventually retire.

Opportunities and Growth:

A diversified strategy is used today to sell products that includes social media, email, sales calls in person or by phone, ZOOM and FaceTime. And, designers and architects visit the showroom in Atlanta. About 5% of sales come from referrals. Referral sources include designers, architects and the manufacturers represented by the business. The new owner could grow the business by importing or purchasing antiques, artwork and accessories to sell under the business’s label. Also, adding fabrics and furniture under a private label to sell is another way to expand on products to sell. Opening another showroom location in the Southeast is another possible growth strategy.

Additional Info

The company was founded in 1984, making the business 38 years old.
The transaction will include inventory valued at $80,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell companies. However, the genuine factor and the one they say to you may be 2 completely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in profits, or an array of other factors. This is why it is extremely crucial that you not count completely on a vendor's word, however instead, utilize the vendor's response together with your general due diligence. This will repaint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that earnings margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract brand-new consumers? Most times, businesses have repeat customers, which create the core of their everyday revenues. Particular variables such as new competition sprouting up around the location, roadway building and construction, and also staff turnover can affect repeat customers and also adversely impact future revenues. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the better the chance to construct a returning consumer base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the neighborhood typical family income influence future revenue potential?