Listing ID: 80642
This growing and profitable company provides strategic services to the real estate market on Oahu. Home staging (placing furniture in units that are for sale) allows realtors and homeowners to sell their houses and condominiums faster and for higher prices, giving them a calculable return on investment. With a well-established client list, a solid inventory of unique furniture and a great location easily accessible to the entire service area, this company is poised for even more growth. Perfect for an owner who enjoys networking with realtors and has an eye for home décor design.
About the company: Focused on high-quality, full staging and top-notch customer service, this company typically provides services to homes in the $1M – $2.5M range. The current housing market is strong and demand for staging services is expected to increase both short term and long term. Ideally located and set up to optimize the staging operation. Operationally, the company’s shelving and storage allow for efficient staging preparation and quick destaging restocking.
About the service: According to the National Association of Realtors, 82% of home buyers’ agents said staging made the home easier for a buyer to visualize the property as a future home. 52% of sellers’ agents said buyers offered more money for staged homes. “Consumers Guide to Real Estate Staging”, published by the Real Estate Staging Association, reports that homes that had not been staged before listing sat on the market an average 143 days. Once these homes were staged, they sold in 40 days. Homes that were staged pre-listing averaged 23 days on the market.
- Asking Price: $390,000
- Cash Flow: $189,658
- Gross Revenue: $274,435
- EBITDA: N/A
- FF&E: $7,000
- Inventory: $105,000
- Inventory Included: Yes
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The venture was started in 2014, making the business 8 years old.
The deal does include inventory valued at $105,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. However, the real factor vs the one they tell you might be 2 totally different things. As an example, they might state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is very important that you not depend totally on a vendor's word, but rather, utilize the vendor's solution together with your overall due diligence. This will repaint a more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that profit margins are too tight. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may 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 might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Often times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain factors such as brand-new competition sprouting up around the area, roadway construction, as well as personnel turn over can affect repeat customers and negatively impact future revenues. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the greater the possibility to develop a returning client base. A last thought is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean family income influence future income potential?