IN CONTRACT – 34 Years Plumbing Supply Hardware Store. Stable Proven Business.

Inventory Included. Avg $3M + Sales With 14% Profit. Enormous Upside Potential.

SB841

Specifications

 Price:
$1,150,000
Revenue:
$3,020,516 (4-year)
Cash Flow:
$413,181 (4-Year)
Location:
San Francisco
Service Area:
San Francisco Bay Area
 Adjusted Profit Margin:
14% (4-Year Avg)
 Employees:
4 FTE (Includes 1 Owner)
Reason for Sale:
Owner Pursues New Career
Goodwill: 5 Stars On Yelp. 34 Years Reputation
Year Established:  1998
Services:  The trusted source for premium plumbing, heating, electrical, and HVAC supplies in the San Francisco Bay area. For years, contractors, tradespeople, and homeowners rely on the store for quality products, exceptional expertise and extensive selection.
Inventory:  $450K (to be included in sales price)
Lease:  2500 sqft (store) + 1000 sqft (warehouse). Lease $4125/month (store) + $1450/month (warehouse)

Exceptional acquisition opportunity:

This well-established business, with a proven 34-year track record, offers significant growth potential. It maintains a positive cash flow and a diverse customer base, with 75% retail and 25% commercial revenue, ensuring risk mitigation. No single customer contributes more than 13% to total revenue.

The sale includes inventory valued at $450,000 and enjoys a loyal returning customer base, accounting for 60% of sales. Located in a prime spot, it can be operated semi-absentee with strong management in place.

With a solid brand and proven model, this business is ideal for a buyer with marketing and customer service expertise. The seller provides training and support for a smooth transition, making it a fantastic opportunity for success. This business is also SBA loan pre-approved.

Value Proposition

  •  A 34 year established reputation.  Steady revenue and cash flow.
  •  Diverse customer base.  Loyal repeat clientele.
  •  Substantial growth potential.
  •  Asking price includes FF&E and inventory worth $450K.

Revenue Breakdown

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Financial Highlights

  •  Listing Price: $1,150,000 (includes FF&E + Inventory)
  •  2022 Cashflow (SDE): $424,145 (12%)
  •  2022 Sales: $3,482,636
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Cashflow Analysis

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Furniture, Fixtures & Equipment + Inventory

The business is situated in a leased retail space spanning roughly 2,500 square feet, with an additional 1,000 square-feet dedicated to warehousing for surplus inventory. Inside the retail space, customers will find a well-organized shopping environment featuring multiple aisles equipped with racks, facilitating convenient and enjoyable shopping and browsing experiences. It’s worth noting that the sales price encompasses a substantial inventory valued at approximately $450,000. 

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 four-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 2.78x, below the market in favor of the buyer. 

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Funding Example

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