Listing ID: 81396

Business Overview

This floor covering retailer and contractor company services the contractors and retail public primarily within a 50-mile radius of the store location. The business was founded in 1954 by the current owners’ father and has built a strong reputation over the years for delivering quality products at a fair price with excellent customer service. The company enjoys a unique position in that it has long-established relationships with commercial property owners, commercial contractors, and insurance companies. It is also well known to its market area public due to a long-respected standing in the community. The company offers the following products and services: carpet sales, luxury vinyl sales, vinyl sales • ceramic tile sales, delivery, and installation through independent contractors. There are currently 3 employees, a full-time salesperson, a bookkeeper/office manager, and a part-time warehouse worker. Currently, the owners are the key employees. There is substantial growth potential for a new owner through aggressive marketing and outside sales to contractors, including increased advertising to retail customers, and increased outside sales to the companies target client base.

Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or contact Charlie Fox at Charlie@mabusinessadvisors.com to receive a confidentiality agreement and learn more about this opportunity.

Financial

  • Asking Price: $599,000
  • Cash Flow: $200,000
  • Gross Revenue: $2,400,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1954

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,600
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Off busy thoroughfare Large modern showroom with attached warehouse

Is Support & Training Included:

Seller will provide training at no cost to qualified buyer.

Purpose For Selling:

Retiring

Pros and Cons:

One of three main players in the market. Business offers superior customer service and attention to detail.

Opportunities and Growth:

New owner could hire and outside salesperson to expand.

Additional Info

The business was started in 1954, making the business 68 years old.

The business has 3 employees and is situated in a building with disclosed square footage of 12,600 sq ft.
The building is leased by the company for $11,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell businesses. Nevertheless, the true reason and the one they say to you may be 2 absolutely different things. For instance, they might say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is very important that you not rely completely on a seller's word, however rather, make use of the vendor's response in conjunction with your overall due diligence. This will paint an extra practical image of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that must be satisfied or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Most times, operating businesses have repeat customers, which form the core of their everyday profits. Certain variables such as new competition sprouting up around the location, roadway building, and also personnel turnover can impact repeat consumers and also negatively impact future revenues. One crucial point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the greater the possibility to build a returning client base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Just how might the regional mean home earnings influence future income potential?