Business Overview

This is a really nice business…We are pleased to offer a large, attractive, bustling, super profitable hardware store located in an idyllic, upscale SE Michigan waterfront village. And it gets even better: there is not another hardware or big box store within a 40 minute round-trip drive.

The business comes complete with a late model 7,500 square foot facility with adjacent, at-the-front door parking. The building sits on a ¾ acre parcel which has both ample parking and space to expand the building for growth opportunities. The real estate (which is included in the offering price) has a market value of approximately $550,000. Also included in the price of the business is over $400,000 of every conceivable SKU of branded hardware items. There are also two seemingly unrelated (to hardware) and surprising profit centers which you will have to submit an NDA to learn about. Last, but not least, the business of course has several repair centers (windows, screens, pipe threading, blade & chain saw sharpening, etc.) to take care of all its customers’ needs.

The business, started in 1954, has been in the seller’s hands for the past 20 years. The business has six full-time employees including a well-paid, knowledgeable, and respected manager. The owner looks forward to selling his very successful store and retiring after giving the buyer ample transition training.

Now the numbers: the business generated the past four years average annual gross sales of $1.76 million while recording annual SDE (the normalized, historical cash flow available to pay a buyer and service debt) of $245,000. And impressively, the past two years, average annual revenues have exceeded $2.0 million with an average annual SDE over the same two year period averaging $300,000. The business, including $550,000 of real estate and $439,000 of inventory is being offered for $1.725 million. The seller plans to carry a six figure seller note for a buyer with appropriate experience.

The seller envisions an asset sale in which he retains the cash and minimal A/R while retiring all liabilities. The seller will match a buyer’s $170,000 down stroke with a $170,000 seller note, leaving $1.385 million required from a combination SBA term loan/mortgage. In this scenario, the buyer can expect annual debt service (SBA loan + seller note) estimated at $148,000, leaving the buyer $200,000 of annual post debt seller discretionary cash flow which includes $47,000 of annual rent paid to the buyer by the business.

For more information on this outstanding business opportunity with significant barriers to entry, please contact Mike Greengard (


  • Asking Price: $1,725,000
  • Cash Flow: $300,000
  • Gross Revenue: $2,000,000
  • FF&E: N/A
  • Inventory: $439,000
  • Inventory Included: Yes
  • Established: 1954

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A late model 7,500 square foot facility with adjacent, at-the-front door parking. The building sits on a 3/4 acre parcel which has ample parking and space to expand the building for growth opportunities.

Is Support & Training Included:

Ample transition training is available.

Purpose For Selling:


Additional Info

The company was started in 1954, making the business 68 years old.
The sale will include inventory valued at $439,000, which is included in the requested price.

The business has 6 employees and is located in a building with disclosed square footage of 7,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. However, the true reason and the one they say to you may be 2 absolutely different things. As an example, they might state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is very important that you not count absolutely on a vendor's word, however instead, make use of the vendor's response along with your overall due diligence. This will paint a more realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans in order to cover things such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that earnings margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in new consumers? Many times, companies have repeat clients, which create the core of their daily revenues. Certain factors such as new competitors sprouting up around the location, roadway building, as well as personnel turnover can affect repeat consumers and also adversely affect future profits. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the better the chance to build a returning customer base. A last idea is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional mean household income influence future revenue potential?