Listing ID: 82165
Great opportunity to own a profitable, reputable, and well-established Furniture and Flooring company.
This successful business sells an extensive inventory of furniture, all types of flooring, mattresses, and window treatments. The real estate includes a 20,000 sq. ft. store, a spacious warehouse, and an apartment.
Sales in 2021 will exceed a million dollars as the owners continue to grow the business. The owners are planning to retire. Inquiries from serious and qualified buyers only please.
- Asking Price: $725,000
- Cash Flow: $235,000
- Gross Revenue: $925,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1954
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Owners will assist in a smooth transition
The business was started in 1954, making the business 68 years old.
The business has 6 employees and resides in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell operating businesses. Nonetheless, the true reason vs the one they say to you may be 2 absolutely different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or an array of various other factors. This is why it is very crucial that you not rely completely on a vendor's word, however instead, make use of the seller's answer in conjunction with your overall due diligence. This will repaint an extra realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies 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 supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that profit margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract new consumers? Often times, companies have repeat customers, which create the core of their daily earnings. Particular elements such as new competition growing up around the location, road building, and also employee turnover can affect repeat consumers and negatively influence future revenues. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the possibility to construct a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood median family income impact future revenue potential?