Listing ID: 82834

Business Overview

This wholesale distribution business is located in Missouri and serves customers in four states.  The business has averaged over $4.8 million in annual sales since 2018 and has had discretionary earnings of over $1 million each year 2017 through 2020 (the fiscal year begins September 1st).   The owner is on track to exceed $5M in the current fiscal year.  The business supplies flooring products to contractors, retail outlets as well as their own showroom.  It has been family-owned and operated since 1992.  The current owners bought into the business in 2001 and have owned 100%  for the last 8 years.  The company has a good website complete with gallery images, product information, and informative videos that help market and position the company to all customer sectors.  Social media is also part of the marketing strategy with current posts and replies on Facebook.

The facility is a 26,000 sq ft building, 6,000 sq ft showroom and 20,000 sq ft warehouse completed 3 years ago by the Seller.  Seller wants to ensure a smooth transition and is willing to remain active for a period of time if desired by the Buyer.

Financial

  • Asking Price: $5,499,000
  • Cash Flow: $1,229,633
  • Gross Revenue: $4,827,275
  • EBITDA: $1,137,533
  • FF&E: $300,000
  • Inventory: $1,100,000
  • Inventory Included: Yes
  • Established: 1992

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:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

26,000 SF (+/-). 6,000 SF (+/-) showroom, 20,000 SF (+/-) warehouse. Paved parking.

Is Support & Training Included:

Seller will assist in a smooth ownership transition.

Purpose For Selling:

Other interests.

Additional Info

The venture was founded in 1992, making the business 30 years old.
The sale shall include inventory valued at $1,100,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 entirely different things. As an example, they may claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other reasons. This is why it is extremely important that you not depend absolutely on a seller's word, but instead, utilize the vendor's response together with your total due diligence. This will paint an extra reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be met or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract new consumers? Most times, companies have repeat consumers, which develop the core of their day-to-day revenues. Certain aspects such as brand-new competitors sprouting up around the area, road building and construction, and also employee turn over can impact repeat consumers as well as adversely influence future revenues. One crucial point 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? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning client base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the regional average house earnings impact future income potential?