Business Overview

It has been a great 42 year run for the owner-operator of this upscale, attractive profitable flower shop and retailer of home décor accessories. Located in a suburb adjacent to an important mid-Michigan city, the owner of this successful and large business is ready to transition the business to only its third owner. After an appropriate training period for the buyer, the seller plans to retire.

The business has been located for almost four decades in a wonderful, free-standing 1400 square foot building. The store offers a cozy environment in which it generates on average an impressive $600,000 of annual sales. The business is ideally located at an important, busy corner where two major surface streets intersect. There are curb cuts off both streets giving customers easy access to the dedicated parking spaces just a few feet from both entrances to the business. A favorable lease that has nominal rent of only 2.0% of revenues is currently in place.

10 loyal and talented employees (several of whom are trained floral designers) with help from a few seasonal workers, handle all sales, 50% of which are derived from business and organization clients, 20% from weddings and 30% from general retail including holidays, special days, graduations, parties, and the like.

The business, which records $130,000 of average, annual SDE (sellers discretionary earnings – the normalized, historical cash flow available to pay an owner-operator and service debt), is being offered for $275,000, an attractive 2.0x multiple of SDE. Approximately $35,000 (cost basis) of salable inventory is included in the sale price. The purchase price includes: (1) all furniture and fixtures; (2) a user friendly and very functional POS system; (3) all inventory; (4) an impressive and very active website; and (5) two delivery vehicles. In addition, to expedite a timely sale, a meaningful seller note will be available for a qualified buyer. Finally, this well-established business has solid, professionally prepared financial statements which should ease the due diligence process.

Meaningful internet sales generated through the company’s website exploded to nearly 90% of total revenues during the Covid-19 shutdown. In the aftermath, internet sales have stabilized at a very impressive 30% of total sales. As a result, the business, through eight months of 2021 is tracking a record year with respect to both sales and SDE. The seller feels there are tremendous growth opportunities by expanding online presence, increasing store hours, and possibly expanding the home decor lines (which currently account for only a modest 10% of sales).

A solid buyer with a 15% ($40,000) down payment should qualify for both $40,000 of seller paper and a $195,000 SBA bank loan. Debt service for the two loans combined would approximate $30,000 annually leaving $100,000 for the buyer to pay himself and/or for other discretionary uses of the $100,000 of free cash flow.

The seller contemplates an asset sale in which cash and A/R are retained by the seller while all other asset categories will be included in the sale price. Additionally, the seller will be responsible for retiring all liabilities at or before closing. For more information on this attractive, niche business opportunity, please contact Mike Greengard ( or 616-450-0707).


  • Asking Price: $275,000
  • Cash Flow: $130,000
  • Gross Revenue: $600,000
  • FF&E: N/A
  • Inventory: $35,000
  • Inventory Included: Yes
  • Established: 1980

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
Purpose For Selling:


Additional Info

The business was started in 1980, making the business 42 years old.
The deal does include inventory valued at $35,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. Nevertheless, the true factor and the one they tell you might be 2 totally different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or an array of other reasons. This is why it is really vital that you not depend totally on a seller's word, yet instead, utilize the seller's response in conjunction with your total due diligence. This will repaint an extra sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the existing company 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 supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too small. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in new clients? Many times, businesses have repeat clients, which form the core of their everyday revenues. Particular variables such as brand-new competition growing up around the area, roadway building and construction, and employee turn over can impact repeat consumers and also negatively influence future earnings. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning consumer base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood typical house earnings influence future income prospects?