Thriving Furniture And Appliance Retailer with Real Estate

Description

The "I love local" movement is strong and healthy and this is especially evident with this small town business. Their purpose to supply the local communities with household furniture and appliances more effectively than any of the big box suppliers. With direct relationships with many manufacturers, including names like Whirlpool, Amana, Maytag, Dreamstar, and McGregor, this operation has been able to set itself up independently of any buying group or franchise. The market for this business is strong and the business is on an uptrend since the owner moved back to the area and began working in the business in 2019.
 
This business has been set up to operate with simplicity and no frills. There is no web-site, no financing options, or warranty options available. There are no glossy, radio, or internet advertising programs, just community bulletins, word of mouth, and Facebook. There are no complex systems, just good old pen and paper + Simply Accounting. The focus is simple, supply quality product and excellent service at low prices without any strings attached.
 
Total Staff: 3 - 4 part time. (Administrative, sales, and delivery + Owner)
 
Reason for selling: Retirement (late 60's). The Owner has owned the business since 2004, moved out of Province in 2009, returned to area in 2019 and had been hands on since.

 

Inventory to be adjusted at closing. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions. The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.

Financial Information

2020
Revenues of $773k and SDE of $156k

 

2021
Revenues of $1.2m and SDE of $290k

 

Fiscal year end is September 30th
Working Capital of $128k. (Inventory: $100k, A/R: $112k, Current Liabilities: $84k)

 

* SDE - Seller's Discretionary Earnings are the pretax and pre-interest profits before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. In addition, SDE may require that expenses be adjusted if a new owner will necessarily need to take on a new expense. SDE is after mortgage payments and return on capital of 8% for the proposed real estate investment.
 
Included in our SDE calculations is $24k available for mortgage payments on the real estate. There is not a mortgage today, we have allocated this expense in our calculations to arrive at the true cash flow of the "business". As an example, a $230k mortgage on the real estate, with 5% interest, 20 year amortization, would be approximately $1500 per month.
 
Please note, in addition to the purchase price, the successful Buyer will need to take over the working capital of the business. This is negotiable. * Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.

Real Estate

Real estate included in sale price:
- approximately .6 acres of highway frontage
- approximately 3800 sft of building, showroom and warehousing
- drilled well and septic
Buildings are in good condition and align with the overall fit and feel of the business. No frills, just quality product and service at a great price. That being said, it should be expected there are 2 buildings that will require new roofs within the next 5 or so years.