Listing ID: 82535
Business Overview
This factory authorized retailer and supplier of quality flooring products and services provides an extensive collection of carpeting, laminate, vinyl planks, and porcelain tile, solid and engineered hardwood flooring products, as well as wood refinishing services. Most business is sourced from the residential housing market through strategic contractor relationships. With a focus on retail sales from their leased, state highway showroom & warehouse in Rockingham County, this company has many opportunities presented for growth. Increase the online presence, add an online catalog, expand service area or reach out to multi-family units and commercial contractors for more contracts. 2021 Sales totaled $692,226 with a high profit margin and $85,462 in Discretionary Earnings. Coming off a record year as they reached $400K in half time, projections are up to $860K or $700K for 2022 conservatively with improved income! Rather you’re looking for a quick or year-long transition, the seller is willing to negotiate to make the sale work, currently focused on quality control and customer satisfaction. The company offers installation services on all of the products it sells through experienced subcontractors; there are currently only five and with additional talented installers, this business could grow very quickly. The wide selection of the most sought after flooring brands are backed by manufacturer warranties and technical support. Since inception nearly 30 years ago, the company has developed a strong customer base including numerous communities within a fifty mile area. The company has a reputation for unparalleled quality and customer satisfaction and has become the most trusted name for flooring in the area. The ownership believes that these factors have attributed to its success and will provide the foundation for new ownership to continue development.
Financial
- Asking Price: $199,000
- Cash Flow: $85,462
- Gross Revenue: $692,226
- EBITDA: $73,362
- FF&E: $100,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2012
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Acquired in 2012.
Owner Transition period of 12 months.
Approaching retirement and/or pursuing other interests.
Additional Info
The venture was founded in 2012, making the business 10 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nevertheless, the true reason and the one they tell you might be 2 absolutely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or a variety of various other reasons. This is why it is extremely crucial that you not rely totally on a seller's word, but rather, use the seller's solution along with your overall due diligence. This will repaint a more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover items like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that earnings margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their day-to-day earnings. Particular aspects such as brand-new competitors sprouting up around the area, road building, and staff turnover can influence repeat clients as well as adversely affect future revenues. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the opportunity to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average household earnings impact future earnings potential?
