Shoe & Leather Repair- $123,304 Annual Cash Flow (SDE)
4-Year Average Gross Sales: 273,518. 35 years. High Profit Margins.
$273,518 (4 Year Avg.)
$123,304 (4 Year Avg.)
Santa Clara County
Santa Clara County
| Profit Margin:
|Reason for Sale:
The Sellers are Retiring
Substantial & Proven
|Seller training period is very flexible. Seller will consider working part time at a mutually
agreed upon salary for an additional length of time if more training is required.
|Services Offered:||On-Site & Mail-in Professional Shoe & Leather Repair, Reconditioning, and Renewal|
|Equipment Included:||Furniture, Machinery, and Equipment Current Value 8,781|
|Clients:||Men, Women, Children, and Specialty Boutique Shops|
|Facility & Lease:||790 Square Feet. Monthly Rent 1,442 Per Month. Lease Length 2 Years|
|Personnel:||Currently Just the Owner|
|Hours of Operation:||4 Days/Week. Wednesday 9-6, Thursday 9-6, Friday 9-6, Saturday 9-5.|
This acquisition opportunity is for a well-established, highly reputable 35-year Professional shoe and leather repair shop located in Santa Clara County. The company offers a full range of shoe & leather repair and/or reconditioning. The shop specializes in performing, repairs, reconditioning, and renewal of designer handbags and designer shoes with great care and quality materials. Western boot repairs and reconditioning services for exotic leathers are provided as well.
This shop has built its reputation on outstanding customer service, the use of the finest materials, and competitive pricing. The owner of this company has demonstrated that the demand for these types of services is still strong and expanding. As he is approaching retirement age, he has chosen to work fewer hours and not hire employees. His financial records for the current store and prior stores prove what is achievable by just being open more hours and hiring additional staff.
The retiring owner will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business. Three weeks training at 30 hours per week included. Seller will consider working part time at a mutually agreed upon salary for an additional length of time if more training is required.
- 35 Years of Established Reputation
- Exceptional Customer Reviews
- 46% Profit Margin 273,518 4-Year Average Sales
- Priced Below Market for Quick Sale – Retirement
- Pandemic Resistant
- Demand for These Services are Timeless
- Listing Price $ 127,000 Including Inventory & Equipment
- 273,518 4-Year Average Sales
- 2018 Sales 413,642
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, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 1.85x, below the market in favor of the buyer.
Purchase Price: $127,000
20% Buyer Down Payment
80% Bank Loan
10-Yearterm at a rate of 5.50% = Monthly loan payment of $1,422
- Cash Flow (4-Year Average SDE $123,304)
- Annual Payment to Bank: $13,236
- Net Profit (After Expenses and loan payment): $110,068
* 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.