Scalable Flooring Retailer – $1.5 Million Earnings, No Installation

sunbeltbayarea

Specifications

 Price:
$5,495,000
Revenue:
$7,200,000
Cash Flow:
$1,500,000
Location:
Greater SF Bay Area
Service Area:
Greater SF Bay Area
 Profit Margin:
20%
 Employees:
3 Full Time Employees
Reason for Sale:
The Sellers are Relocating
Goodwill: 10 Yr Reputation
4 Star Rating
Year Established:  2010
Services:  Retail Flooring Sales – No Installation
Specialty Licenses: No Contractor Licenses Required
Clients:  70% Retail; 30% Commercial
Lease:  Over 10,000 sq. ft. Warehouse & Showroom, Monthly Lease Approx. $16,000
Personnel:  3 FT Technicians, 1 FT Owner, 1 PT Owner, 2 PT Contractors
Inventory:  $700,000 (approx.)

This acquisition opportunity is for a well-established, highly reputable Retail Flooring Sales business that serves the San Francisco Bay Area. It is located within 30 minutes of SFO Airport. The company sells flooring to retail customers and commercial clients. The full-time owner engages clients with flooring sales support. The top 3 customers normally account for less than 5% of the business. The top supplier normally represents about 20% of the business.

A buyer for this business should be (or hire) a skilled customer salesperson with retail management experience. The scalable business model with few employees, can be readily scaled by an energetic buyer to other metro areas to scale earnings accordingly.

The relocating owners will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business.

Value Proposition

  • Over 10 years – Established Reputation
  • Exceptional Customer Reviews > 4 stars
  • 2021 Projected Earnings $1,562,000
  • > $1M Revenue Per Employee
  • Scalable Revenue & Earnings – Add Metro Area
  • Flooring Sales – No Installation
  • No Contractor License Required
  • Recognized Leader
sunbeltbayarea

Revenue Breakdown

sunbeltbayarea

Financial Highlights

  • Listing Price: $5,495,000
  • 2020 Cash Flow (SDE) = $1 Million
  • 2021 Cash Flow (SDE) = $1.56 Million
  • Removed Low Margin Line, Starting 2018
  • 2021 YTD Sales (Jan thru May) = $2.9 Million
  • Inventory (approx.): $700,000
sunbeltbayarea

Cashflow Analysis

sunbeltbayarea

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, the projected 2021 cash flow is applied. The multiplier applied in this case is 3.5x, due to high cash flow, low employee count and the simplicity of operating and replicating the scalable business model to multiply returns.

sunbeltbayarea

Funding Example

Purchase Price: $5,495,000

25% Buyer Down Payment

$1,373,750

Buyer’s Equity

75% Bank Loan

$4,121,250

10-Year draft Term at a rate of 5% Monthly loan payment of $43,711

  • Cash Flow (SDE in 2021 projected): $1,560,000
  • Annual Payment to Bank: $524,532
  • Annual Earnings before taxes (After expenses and loan payment): Greater than $1,000,000
sunbeltbayarea
sunbeltbayarea

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.