Listing ID: 80525
Business Overview
This is excellent but just not for just anyone. This is very profitable and established and has done extremely well during the pandamic.
High-quality retail with premium outdoor brands. The company has expanded to a multi-locations in the southeast region. Excellent staff and locations.
The store is doing very well and financially and is in the best position the company has ever been, Even considering Covid 19.
The ideal buyer will be someone or a bigger company that has the ability to drive eCommerce and set up that side of the business.
The business is extremely profitable and has done well in finding a niche as to where to place retail stores and build their own brand. The ideal buyer must have a vision and financial strength to take this company to the next level and beyond.
The owner is willing to sell off as much as 75% of the company and stay on holding 25% and continue to run the retail stores (the owner has an excellent track record for buying products and running operations).
This is a good opportunity for a private individual or private equity company.
-Value of Fixtures and Equipment: $50,000 per location =$250,000 total.
-Rent: Is this total rent or per location. 1 – $12,000, 2 – $14,000, 3 – $10,000, 4 – $14,000
-Square footage of the retail space: 1 – 11,500 ft, 2 – 6,000 ft, 3 – 5,000 ft, 4 – 7,500 ft
– Plus, warehouse footage of the: 9100 ft, there are 2 warehouses only one is needed.
-Strengths of the business: Top Outdoor and lifestyle retail brands. Strong terms with each brand. Over ten years of proven growth. The store has built a brand of its own and that has become very popular in the area.
-Expansion opportunities: Great brand recognition with room for growth for brick and mortar as well as online.
-Competition: Very little to none in the markets we are in. No other specialty shops at all.
-Any information that you would look for if you were to invest in a similar business: The brand name has the look and feel of a national company. It has untapped potential in the online market. The branding separates it from most specialty shops on this scale. 3 of the 4 shops have proven successful over 5 years with two shops being in business more than 10. The newest shop has started with a very strong opening in 2016.
The business has bounced back considering Covid 19.
Financial
- Asking Price: $3,000,000
- Cash Flow: $1,000,000
- Gross Revenue: $6,500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $2,000,000
- Inventory Included: N/A
- Established: 2008
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:65
- Furniture, Fixtures and Equipment:N/A
Retail with 2 warehouse locations (only 1 is needed)
As needed and the main owner is willing to stay on.
2 Partners are exiting, 1 is willing to stay on.
The company has found a niche that will be discussed.
There is not an online store and there is an unlimited possibility in the online internet market area.
Additional Info
The company was founded in 2008, making the business 14 years old.
The deal won't include inventory valued at $2,000,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. However, the real factor vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competitors, current reduction in revenues, or an array of various other reasons. This is why it is really essential that you not rely completely on a vendor's word, however instead, use the vendor's response in conjunction with your overall due diligence. This will paint a more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering things such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too small. Numerous companies 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 may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new customers? Many times, operating businesses have repeat consumers, which create the core of their everyday profits. Specific aspects such as new competitors sprouting up around the area, road building, as well as personnel turn over can influence repeat clients as well as negatively influence future earnings. One essential point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the opportunity to construct a returning client base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Just how might the local typical home income effect future income potential?
