Iconic Russian River Store, Featuring Candy, Toys, River Play Needs, and Much More
Consistent Average $437,000 in Sales and $95,997 SDE in 2021
Specifications
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Price: $399,000 |
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Revenue: $437,092 (3 Year Avg.) |
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Cash Flow: $72,676 (3 Year Avg.) |
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Location: Guerneville, CA |
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Service Area: Guerneville & Russian River |
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Inventory Included: $134,000 (approx.) |
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Employees: 1 FT & 1 PT + 2 PT Owners |
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Reason for Sale: The Sellers are Retiring |
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Goodwill: 73 Yr Reputation |
| Year Established: | 1949 (current owners 17 years) |
| Products Offered: | Nostalgic candy, toys, inflatable boats, floaties, river shoes, flip flops, hobby items, art supplies, greeting cards, and more. |
| Equipment: | $21,000 FF&E Included (list to be provided) |
| Personnel: | 2 Part Time Owners, 1 Full Time Employee, and 1 Part Time Employee, who becomes Full Time During the Summer |
| Clients: | Locals and Tourists Alike |
| Facility & Lease: | 1152 Square Foot Facility. Current Rent $1,741 Per Month |
Up for sale is a colorful and unique component of Russian River history, THE GUERNEVILLE 5 & 10. For 73 years, this fun store has served the visitors of this resort destination and surrounding area. No trip to this beautiful region is complete without visiting this traditional “Five & Dime” store.
The natural beauty of this area which includes redwood forests and the Russian River, have made this summertime haven such a desirable location. Those who enter are pleasantly surprised to find, in addition to common 5&10 items, a great selection of nostalgic candies, upscale toys, games, art supplies, craft materials, greeting cards, souvenirs, and of course, a treasure trove of inflatable boats, floaties, beach towels, sunscreen, attire, etc. to enjoy the river.
This well-loved store is known for its friendly, helpful staff and their involvement with local community events.
Value Proposition
- 73 years of Established Reputation
- Exceptional Customer Reviews
- Priced Below Market for Quick Sale
- Located in a Prime Vacation Area
- Booming Local Economy
Financial Highlights
- Listing Price: $399,000 Includes Inventory
- 2021 Cashflow (SDE): $95,997
- 2021 Sales $529,764
- 2021 Year-End Inventory $134,000
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 4.16x, below the market in favor of the buyer.
Funding Example
Purchase Price: $399,000
20% Buyer Down Payment
$79,800
Buyer’s Equity
80% Bank Loan
$319,200
10-Yearterm at a rate of 5.50% = Monthly loan payment of $3,464.14
- 4-Year Average Cash Flow SDE $95,997
- Annual Payment to Bank: $41,570
- Net Profit (After Expenses and loan payment): $54,427
* 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.