Business Overview

One of a kind and the only store of its kind in the Des Moines, IA metro area.

Well established (over 20+ years) children’s resale clothing and accessories retail store for sale in Des Moines, IA. They sell kids, clothing, shoes, toys, furniture and baby gear.

With over 8,500 sq. ft. of floor space, produces over $1.7MM in sales and is cash flow positive.

Sales in 2019 = $1,782,600
2019 Cash flow = $420,500

The owner is looking to retire.

This is an established franchise.

Financial

  • Asking Price: $1,295,000
  • Cash Flow: $407,500
  • Gross Revenue: $1,742,635
  • EBITDA: $407,500
  • FF&E: $310,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,300
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

8,900 sq. ft. of retail space and 3,400 sq. ft. of storage/office.

Is Support & Training Included:

Negotiable. Training with the franchise.

Purpose For Selling:

Retirement

Pros and Cons:

Only store of this kind in the Des Moines metro

Opportunities and Growth:

High traffic area.

Additional Info

The company was founded in 1998, making the business 24 years old.
The sale will include inventory valued at $150,000, which is included in the suggested price.

The business has 20 employees and resides in a building with estimated square footage of 12,300 sq ft.
The real estate is leased by the company for $12,211 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. For instance, they might state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent reduction in profits, or a range of various other factors. This is why it is very essential that you not rely completely on a vendor's word, yet instead, use the seller's response together with your general due diligence. This will repaint a much more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to 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 vendors that have to be satisfied or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new customers? Most times, companies have repeat consumers, which develop the core of their everyday earnings. Certain elements such as brand-new competitors sprouting up around the location, roadway construction, as well as personnel turnover can affect repeat clients and also adversely affect future profits. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A last idea is the general area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical home earnings effect future earnings potential?