Business Overview

This is a long-standing, profitable, retail floor covering store that serves not just the local town it resides in but has a history of working with local builders to furnish their flooring needs. The business was started in 1968 and has grown to offer multiple flooring options with average sales revenue of approximately ($1,139,000) one million, one hundred and thirty-nine thousand dollars a year and an average annual net income of approximately ($185,000) one hundred eighty-five thousand dollars. The business is in a commercial location along a well-traveled highway. This business offers all types of flooring needs associated with building or remodeling. In addition, it also has employees who specialize in working with clients to design, plan, and execute all the steps needed in choosing flooring. The facility includes two buildings that contain a showroom housing all the flooring styles reflecting current trends, as well as a fully stocked warehouse. The owners are willing to support the buyer in transition and are open to discussing ongoing support. Real estate and FF&E are included in the price.

Financial

  • Asking Price: $1,400,000
  • Cash Flow: $185,000
  • Gross Revenue: $1,139,000
  • EBITDA: N/A
  • FF&E: $160,500
  • Inventory: $250,000
  • Inventory Included: Yes
  • Established: 1968

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:11,374
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility is located on approximately 1.2 acres in a commercial business district. The lot size is approximately 170 x 305. The main building is 50 x 102.5 which houses the showroom. The warehouse is approximately 108 x 48.

Is Support & Training Included:

Current owners are willing to work with the buyer in training the new owner. The new owner will be able to depend on the current employees of the business.

Purpose For Selling:

Retirement

Opportunities and Growth:

Interior space is readily available for growth in several areas, examples include: Cabinetry, Window Coverings, Paint, and Kitchen Design. Ample lot size provides space for exterior expansion if needed.

Additional Info

The company was founded in 1968, making the business 54 years old.
The transaction does include inventory valued at $250,000, which is included in the asking price.

The company has 6 employees and is situated in a building with disclosed square footage of 11,374 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. However, the real factor and the one they say to you might be 2 completely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is really crucial that you not depend entirely on a vendor's word, yet rather, use the seller's answer in conjunction with your total due diligence. This will repaint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering things like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that earnings margins are too small. Numerous organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments 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 suppliers that have to be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract new customers? Many times, businesses have repeat consumers, which create the core of their everyday revenues. Particular factors such as new competitors growing up around the location, road construction, as well as employee turnover can influence repeat customers and also negatively affect future earnings. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the higher the chance 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 situated on the outside border of town? Exactly how might the local typical household earnings effect future earnings prospects?