Unrivaled Designer Furniture Store Serving Affluent Tastes
Sales, Assembly, Repair and Delivery of High-Quality furniture all under one roof.
Specifications
 Price: $460,000 + Inventory |
Revenue: $557,006 (2021) |
Cash Flow: $183,611 (2021) |
Location: Monterey Bay |
Service Area: Coastal Monterey County + |
 Profit Margin: 33% in 2021 |
 Employees: 1 FT Owner, 2 PT Employees |
Reason for Sale: The Seller is Retiring |
Goodwill: 39 Yr Reputation Great Reviews |
Year Established:Â | 1983 |
Services:Â | High quality furniture sales, assembly, and delivery, as well as repairs and restoration of vintage items. |
Equipment:Â | $14,860 FF&E, (2014 Ford F150 with 63K miles available for an additional $14K). |
Inventory:Â | $250,000 (approximate current). Â The value of inventory at time of sale to be added to selling price. |
Clients:Â | Boutique hotels, designers, and affluent residential customers. |
Facility & Lease:Â | 5,330 square foot showroom and warehouse, $5,500.00 per month (which is below market). |
Personnel:Â | One full time owner and two part time employees. |
Clients include upscale residential families, individuals, boutique motels, and designers.
In addition to sales, assembly, and delivery of new items, this store offers repairs and restoration of vintage items as well.
Seller will provide 3 weeks of training at 30 hours per week. Since seller is the landlord, he will be around for the occasional future questions that may occur.
Value Proposition
- 39 Years of outstanding reputation
- Stellar customer reviews
- Loyal repeat clientele
- Priced Below Market for Quick Sale – Retirement
- Substantial Growth Potential
- Upscale unique product offerings
- Pandemic Resistant
Revenue Breakdown
Financial Highlights
- $14,860 FF&E
- $402,357 3 year gross sales average
- $183,611 2021 sellers discretionary earnings
- $557,006 2021 gross sales
- 33% gross margin for 2021
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, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is, 2.51 X below the market in favor of the buyer.
Funding Example
Purchase Price: $460,000
20% Buyer Down Payment
$92,000
Buyer’s Equity
80% Bank Loan
$368,000
10-Year term at a rate of 5.50% = Monthly loan payment of $3,994
- Cash Flow (2021)): $183,611
- Annual Payment to Bank: $47,928
- Net Profit (After Expenses and loan payment): $135,683
* 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.