It has been determined that the owner/seller has met our qualification standards of being an established, profitable, and bankable business. This is the starting point of our SCS system, that has proven to deliver results three times or more industry standards and helps those we work with experience our mission of receiving the highest customer satisfaction ratings in North America. To obtain a thorough overview of this business, hit the CONTACT SELLER button. Once completed, you will receive an automated email from our system that will provide you with a link to complete a Non-Disclosure Agreement (NDA).
Description
Discover this community staple retail business positioned in high-traffic locations, with owned and leased real estate, offering experienced hands-on retail operators an attractive choice to capitalize on consistent revenue streams and the ability to create immediate increased profitability.
Can be purchased as a whole or possible to split up the 5 locations.
- Annual revenues growing at a rate of 8%.
- Consistent Gross profit margins of 45%
- Ideal locations in the communities served, long history of customer patronage from a broad customer base
Based on the current owner's length of time in business, they are certain each location's profit can be increased by $50k or more with a hands-on owner who is engaged with the community and managing inventory more appropriately.
The owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.
By completing the NDA and becoming adequately qualified, you will be sent a full Offering Memorandum that will answer most, if not all, of your questions.
Financial Information
* Please note: The Revenues and SDE as advertised is based upon 3 locations of the business.
The asking price does not include inventory, which carries a 50% - 60% profit margin.
3 year average revenues of $2.01m and SDE of $380k (19%)
Annual Revenues and Seller's Discretionary Earnings, for the 3 locations, with year end February 12:
2023: $1.81M, with SDE of 280k
2022: $2.07M
2021: $2.14M
Annual Revenues and Seller's Discretionary Earnings, for the entire grouping, with year end February 12:
2024: $2.84M, with SDE of 415k
2023: $3.22M, with SDE of 446k
2022: $3.01M, with SDE of 456k
2021: $2.72M, with SDE of 439k
Total inventory for the 3 locations is anticipated to be in the $1.3M range.
* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full-time owner-operator would derive from a business on an annual basis. SDE is the pre-tax and pre-interest profits, before non-cash expenses, owner's benefits, one-time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
Operations
There are 2 locations that are leased, with the 3rd location being an owned property, with the seller willing to sell or lease. All are on a new 5 year lease with an option to renew:
1. Approximately 8,000 sq ft - $72k (property tax included)
2. Approximately 4,000 sq ft - $56k (property tax included)
3. Approximately 6,000 sq ft - $50k (plus property taxes. This is the owned building, option to purchase available, expected value of $500,000)
In total, there are 3 properties owned by the company, which could be purchased:
1. Approximately 6,000 sq ft building, prime downtown location, located on 6,400 sq ft, city water and sewer - (operates from) - approximate value of $500k
2. Approximately 4,700 sq ft building, prime high traffic commercial district, located on 1.31 acres, city water and sewer - (operates from) - approximate value of $1M (not included in this asking price).
3. Approximately 4,700 sq ft building, prime downtown location, on 12,550 sq ft, city water and sewer - leased as investment, with long term lease in place currently at $44k annual. Approximate value of $500k
