Price: $700,000
Location: Northern Michigan
Industry: Floor Covering Retailer
Listing ID: CK250521GC
Status: Sold
Listing Description
Business Being Offered 10% Below Valuation Price
Highly respected and recognizable flooring retailer in Northern Michigan is available for sale. The company continues with its original goal of carving out a niche in the Moderate to High-End Flooring Covering segment. The business has withstood the test of time and proven itself more than worthy to withstand and ups and downs of the economy. The current year is continuing the success of the prior year. The years of hard work building an outstanding brand in this middle market region continues to pay off with 2022 obviously turning in a record year! Yes, this company is being helped by a big positive bounce in the economy and the building segment, but it took years of hard and smart work to take full advantage of the present opportunities.
The company has a diversified client base made up of retail, contractors, and commercial accounts. Their very effective marketing approach and a highly skilled sales team and, they do not promote entry level products to attract customers. Their image has always been they are the best Moderate to Higher end provider in their area. Their reputation, this company is the quality place to go and attract a very knowledgeable client.
There are Multiple opportunities for continued growth, including expanding current product lines and expanding into complimentary offerings such as custom draperies.
The storefront makes it the premiere provider and they have invested heavily in building a world-class team with industry knowledge beyond any competitor.
The owner is ready to move into retirement, after helping in a smooth transition, so the business is being offered at a 10% discount of its $780,000 valuation.
Listing Details
Total Sales: $4,342,500
Cash Flow: $331,121
EBITDA: $259,121
FFE: $295,966 (Included in Price)
Inventory: $150,000
Real Estate: $1,900,000
Reason For Sale:
Retirement
Training & Support:
Owner willing to provide necessary transition assistance.
Operation
Days & Hours of Operation: Monday - Saturday
Employees: 10
Managers: 3
Location
Monthly Rent: 12,500
Square Footage: 10,860
Facilities Information:
Perfect location and building for this business. The showroom and offices were designed specifically for this business, with all the latest accessories and contemporary work environment.
The company also rents an off-site 4,000 square foot warehouse at $2,070/month on a gross lease.
Summary
Competition:
The company only has a few direct competitors, and the Big Box stores primarily reach out to a customer base this company not pursuing. They are differentiated by:
- Exclusive marketing arrangements with major premier brands.
- A business model that is also much more consumer focused.
- The staff can sell what the customer wants, not what we need to sell them.
- Great young staff, well trained.
Competitors might advertise themselves as a “Design Center”, but they actually deliver on that promise.
Potential Growth:
- Continue the organic growth.
- Add complimentary product offerings.
- Expand in current product offerings.
- Add Custom Draperies
Financing/Terms:
Seller is willing to provide some seller financing to support buyer with SBA financing.