Business Overview

We are pleased to offer a successful, well-established (i.e. in continuous operation “forever”) West Michigan hardware store. This iconic business leases a late model 6,000 square foot facility (with a 6,000 square foot basement) on a 1/2 acre plot. Rent (to a third party) is a favorable 7.0% of revenues. The facility is located at the intersection of busy city streets providing both easy access and high visibility. Major highways are just minutes away, and there is ample dedicated parking at the store’s main entrance.

Included in the price of the business is $350,000 of inventory encompassing every conceivable SKU of branded hardware items including tools, supplies, fasteners, etc. In addition, the business has several repair centers (windows, screens, pipe threading, keys, power tool repair, ratchet kit rebuild, blade & chain sharpening, etc.) to take care of all its customers’ (commercial and individuals) needs.

This long-time business has been in the seller’s hands for the past 33 years. Unlike most hardware stores, he has developed a strong relationship with a loyal clientele of commercial customers including builders and manufacturing entities. This “b to b” component complements the walk-in traffic from individuals and homeowners. With the store not offering evening or Sunday hours, the business is able to operate with just three full-time and three part-time employees 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 $800,000 while recording average, annual SDE (seller’s discretionary income – the normalized, historical cash flow available to pay a buyer and service debt) exceeding $200,000. The business is being offered for $875,000 which is a combination of:

• 2.5x SDE which is 2.5 x $210,000 = $525,000
• Inventory at cost (as of 11/30/21) = $350,000
• $525,000 + $350,000 = $875,000 list price for the business

The seller envisions a cash-free, debt-free asset sale in which he retains the cash and A/R while retiring all liabilities. The seller will match a buyer’s $100,000 (11.5%) down stroke with a $100,000 seller note, leaving $675,000 required from an SBA term loan. In this scenario, the buyer can expect estimated annual debt service (SBA loan + seller note) approximating $99,000, leaving the buyer on average more than $100,000 of annual post debt service discretionary cash flow.

For more information on this excellent business opportunity, please contact Mike Greengard ( or 616-450-0707)


  • Asking Price: $875,000
  • Cash Flow: $210,000
  • Gross Revenue: $800,000
  • FF&E: N/A
  • Inventory: $350,000
  • Inventory Included: Yes
  • Established: 1988

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:6,000
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A late model 6,000 square foot facility on a 1/2 acre plot. Located at the intersection of busy city streets providing both easy access and high visibility.

Is Support & Training Included:

Ample transition training provided by owner.

Purpose For Selling:


Additional Info

The venture was started in 1988, making the business 34 years old.
The sale shall include inventory valued at $350,000, which is included in the asking price.

The company has 6 employees and resides in a building with approx. square footage of 6,000 sq ft.
The building is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or an array of various other reasons. This is why it is extremely essential that you not rely totally on a seller's word, yet instead, make use of the seller's answer combined with your overall due diligence. This will paint a much more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering items like stock, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that should be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new clients? Many times, businesses have repeat customers, which develop the core of their everyday earnings. Specific factors such as brand-new competition growing up around the area, road construction, as well as staff turn over can influence repeat customers as well as adversely impact future revenues. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the better the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Just how might the local median house earnings impact future earnings potential?