Listing ID: 80529
High-End Furniture Store Metro Atlanta Owner would like to sell the property that is an addition to the business.
A+ High End, Excellent Area Etc…
Full-Service High-End Custom Design
All Top High-End Expensive Brands of all types of Furniture
Excellent Seasoned Staff
30 yr old seasoned business in excellent business condition. Owner retiring, selling for all the right reasons.
The business sits on an excellent piece of real estate. The buyer could buy real estate or the business could be moved.
The Cash Flow to the owner is $800,000 to $1,000,000
The business could be moved. This is an excellent piece of real estate to purchase however, this is a VERY expensive real estate area. The property is a long-term highly valuable piece of real estate.
There is a good amount of inventory that will be negotiable.
Inventory: Included in the asking price
Furniture, Fixtures, & Equipment (FF&E): Included in the asking price
Facilities: Property and Building 3.5 Acres of Prime Real Estate with Excellent Road Frontage Business could be moved but this is a very expensive area.
Competition: Not much on the high end, more could be done to produce middle-market sales. This would be an excellent target growth strategy.
Support & Training: As Needed
Reason for Selling: Retirement
- Asking Price: $3,500,000
- Cash Flow: $1,000,000
- Gross Revenue: $4,000,000
- EBITDA: N/A
- FF&E: $500,000
- Inventory: $3,000,000
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was started in 1988, making the business 34 years old.
The sale shall include inventory valued at $3,000,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nonetheless, the real reason vs the one they tell you may be 2 absolutely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a variety of various other reasons. This is why it is very important that you not depend completely on a vendor's word, however rather, utilize the seller's response in conjunction with your total due diligence. This will paint a much more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that earnings margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be satisfied or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new customers? Most times, companies have repeat customers, which form the core of their day-to-day revenues. Particular aspects such as new competition sprouting up around the location, road building, and employee turnover can influence repeat customers as well as negatively impact future profits. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the better the possibility to develop a returning client base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the regional mean household income impact future earnings prospects?