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Well-Established Florist in Amazing Silicon Valley Location

3$1.3M Sales in 2021 with YOY increase of 70%

Specifications

 Price:
$400,000
Revenue:
$1,263,611 (2021)
Cash Flow:
$137,929 (2021)
Location:
San Francisco Bay Area
Service Area:
San Francisco Bay Area
 Profit Margin:
11%
 Employees:
12 (Includes 1 Owner)
Reason for Sale:
The Seller is Retiring
Goodwill: 5-star Yelp Reviews, Premium location
Year Established:  Established in 2010 and started at the current location in 2015
Services:  High-end floral service for consumers, corporate clients, weddings and special events
FF&E:  $29,400 FF&E included in the sale
Lease:  1,000 sq. ft. shop plus outdoor patio; Lease ends Sept 2023; Monthly Lease $3,768
Personnel:  11 FT/PT employees and 1 FT owner
Marketing:  Website, Instagram, Mailchimp, Pinterest, and charity events

Don’t miss the opportunity to own a well-established upscale floral shop in an affluent community in Silicon Valley’s San Francisco. The business is a market leader in high-end floral sales. The current owner has operated at this amazing location since 2015 and grew the business from a single employee shop to the market leader with 11 regular staff members and many freelance contractors in busy season.

The business offers high-end floral arrangements, orchids and plants to retail customers, corporate clients, regular subscribers, and clients for weddings, private parties and events. The business also partners with H. Bloom and B Brooks to offer luxury floral arrangements. The business distinguishes its brick-and-mortar floral shop from others in the market with 1) high quality and wide varieties of floral selections in premium and high-end florals and foliage; 2) modern and current artistic designs; and 3) unmatched customer service.

Sales are done through its beautifully designed website, phone orders, walk-ins, subscription packages, word-of-mouth, and charity events. The shop also has Instagram and Pinterest accounts that help with the sale. There is generous amount of eclectic FF&E, valued at $29,400, in high-quality artistic taste included in the sale.

The business is currently staffed with 11 part-time and full-time employees and many freelance contractors when needed. The business was temporarily closed during the initial COVID shelter-in-place in 2020 but it had a strong recovery in 2021 with year-on-year sales increase of 70%.

Hours of Operation; Mon thru Fri, 10AM to 5PM.

The business has been pre-approved for SBA loan.

Value Proposition

  • Market leader in high-end floral services in Silicon Valley
  • Located in an affluent neighborhood
  • Sales increased 70% YOY from 2020 to 2021
  • Sales as of 4/30/2022 reached $500K – 40% of2021 Sales
  • Many corporate clients for special event orders
  • Market competitive edge at many fronts from C to B
  • Few major competitors in vicinity
  • Great potential for further growth

Revenue Breakdown

* Majority revenue is generated through website sales and phone orders with respective 33% and34%.

* Other revenue includes revenue from weddings and events as well as sales through partnerships with H. Bloom and B Brooks – potential to expand.

Financial Highlights

  • Listing Price: $400,000
  • 2021 Cashflow (SDE): $137,929
  • 2020 sales declined as a result of COVID
  • 2019 operating costs increased due to personal reasons
  • 2021 sales reached historical record with 70%increase
  • Business is pre-approved for SBA loan Financial

Cashflow Analysis

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, 2021 cash flow is applied based on its current growth. The multiple applied in this case is 2.90, on par with the market average for a premium florist shop.

Funding Example

Purchase Price: $400,000

20% Buyer Down Payment

$80,000

Buyer’s Equity

80% Bank Loan

$320,000

10-Yearterm at a rate of 6% = Monthly loan payment of $3,553

  • Cash Flow (SDE in 2021): $137,929
  • Annual Payment to Bank: $42,632
  • Net Profit (After Expenses and loan payment): $95,297

* 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.

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