Specifications. RE: Floral Boutique with 22% Profit Margin in Omaha. Business Overview

Size: px

Start display at page:

Download "Specifications. RE: Floral Boutique with 22% Profit Margin in Omaha. Business Overview"

George Dwayne Tate
5 years ago
Views:

1 Business Overview RE: Flral Butique with 22% Prfit Margin in Omaha Specificatins thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

2 SUMMARY OF THE BUSINESS Established flral studi and stre with ver $500,000 in grss sales. Situated in a well-trafficked strip mall in Omaha, this anchr stre has becme a staple since its pening in Delivering within the Omaha metr, this stre has a custmer retentin rate f 80%. Sales have been at a steady clip ver the last few years, blstered by daily rders and cntracts. The current wner has recently been signed fr a large event that is expected t invice ver $6,000, and any wnership transitin shuld nt interrupt this deal. All staff are well-trained and capable, wrking within set hurs and with the understd need fr sme seasnal flexibility. Currently there are three full-timers and ne part-timer emplyed in the studi, in additin t tw alternating delivery drivers. Emplyees are encuraged t help in the creatin f custm flral designs that are then featured fr sale. The seller is als assisted by a part-time bkkeeper wh lgs invices int ShpKeep Pint f Sale sftware. The 2,000-square ft building is leased at $11.25 per square ft, which is half f what mst stres pay in this particular develpment. Leasing is all inclusive, cvering the shp s cmmn area as well. Included in the sale is a delivery vehicle with arund 50,000 in mileage. With the right buyer, this already successful business culd increase sales thrugh imprving web traffic and revamping marketing materials. Seller is willing t finance 20%, and with a dwn payment f $24,000, a new wner may expect t see a three-fld return and a prfit f $95,749 the first year. Business Highlights Grss sales ver $500,000 in 2015 and 2014, and annualized at $531,336 in 2016 Anchr lcatin in high traffic strip mall with 80% custmer retentin Lease at $3,200/mnth, which is rughly half that f the rest f the develpment Current wner invests 40 hurs per week and is supprted by well-trained staff Seller is unable t cntinue as wner due t back injuries that hinder lng perids f standing Financial Highlights List Price: $120, Grss Sales: $514, Grss Sales: $518, Cash Flw: $113, Cash Flw: $36,002 22% prfit margin $46,498 wrth f assets included in the purchase: Equipment: $27,998 flral cler, design tables, wall and cabinet displays Inventry: $18,500 gift merchandise, event and strage inventry Intangibles membership in Flwer Shp Netwrk *amunts may vary thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

3 thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

4 Cash Flw Analysis Descriptin f Financial Statement P&L Statement Tax Return Tax Return Tax Return Ntes GROSS SALES $514,759 $518,613 $507,482 $441,003 Net Incme Shwn n Financial Statement $51,333 $-31,048 $-341 $-16,714 ADDBACKS Cmpensatin t Owner $41,600 $41,600 $41,600 $41,600 11% Tax n ttal W2 Salaries $4,576 $4,576 $4,576 $4,576 Depreciatin $4,591 $6,857 $5,719 $3,165 Nn-cash item Interest $765 $834 $99 $0 Nn-nward ging expense Amrtizatin $0 $0 $0 $465 Nn-cash item Insurance Premiums fr Owners: Health, Life, Aut $0 $5,292 $0 $0 Nn-nward ging expense Travel $7,837 $891 $0 $0 Travel unrelated t business Aut-Persnal Use $2,730 $7,000 $0 $0 Persnal use f aut unrelated t business TOTAL ADDBACKS $62,099 $67,050 $51,994 $49,806 Seller's Cash Flw = Ttal Addbacks + Net Incme $113,432 $36,002 $51,653 $33,092 Prfit Margin % 6.94 % % 7.50 % Prfit margin f 22% in % increase in cash flw during 2016 Assets & Inventry Sampling Flral cler - $5,500 Signs - $2,500 Display cabinets - $3,850 Back rm shelving - $1,830 Strage inventry - $5,000 Gift merchandise - $10,000 Event Inventry - $3,500 thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

Emplyees The stre runs with 3 full-time persnnel and 1 part-time assciate, as well as 2 delivery drivers that rtate schedules Emplyees design and cmplete rders

capable f flral design, s a new wner need nt be already in the industry Prducts Buquets & Crsages Traditinal rses, custm, and mre!

5 Emplyees The stre runs with 3 full-time persnnel and 1 part-time assciate, as well as 2 delivery drivers that rtate schedules Emplyees design and cmplete rders The stre wner mstly supervises emplyees and rder cmpletin, but has a backgrund in design and will still create when needed r desired Current emplyees wuld be capable f flral design, s a new wner need nt be already in the industry Prducts Buquets & Crsages Traditinal rses, custm, and mre! Gurmet gift baskets Hney Lver Gardeners Delight Spa Indulgence Gdies Natural Handmade Sap Lcal Raw Hney Indr plants thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

ads as part f this effrt Attend bridal/event trade shws Distribute flyers t businesses and hmewners Wrk with wedding planners and event planners Valuatin Details The Firm

6 Ptted palms Chinese Evergreen many mre! Grwth Opprtunities Website verhaul culd increase nline traffic The current design is functinal, but is nt visually appealing Current wner has nt dne much in marketing Add radi ads as part f this effrt Attend bridal/event trade shws Distribute flyers t businesses and hmewners Wrk with wedding planners and event planners Valuatin Details The Firm Business Brkerage used a Cst-t-Create Valuatin methdlgy t determine the Purchase Price f the business. Due t the time, mney and energy invlved, it wuld take mre than the List Price f $120,000 t recreate and build the reputatin f this business. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

7 Funding Example Purchase Price: $120,000 20%Buyer Dwn Payment: $24,000 20%Seller Financing: $24,000 60%Bank Lan: $72,000 Since the bank lan wuld be under $150,000, this business wuld be a perfect pprtunity fr an Express Lan! Seller Financing 5-year term at a rate f 4.5% equals a mnthly lan payment f $447. Bank Lan 7-year term at a rate f 5.25% equals a mnthly lan payment f $1,026. After business expenses and annual lan payments f $17,683, a buyer wuld retain a prfit f $95,749. A dwn payment f $24,000 results in a three-fld return n investment in the first year! A lender is required t have a minimum 1.5 cverage rati fr any business lans extended. At a prpsed Purchase Price f $120,000 with the terms listed abve, the cverage rati is Please nte that the decisin f whether t extend a lan n any particular sale belngs t the bank, and this dcument des nt guarantee specific terms r verify that financing is available. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

8 T receive a full financial package and specific infrmatin regarding this business: 1. Cmplete the Qualified Buyer Dcuments (Nn-Disclsure Agreement and Buyer Questinnaire) n ur website r print, scan and return the attachments t inf@thefirmb2b.cm 2. Call The Firm Business Brkerage at t schedule an appintment r cnference call with a Brker. The Firm currently has ver 90 cash flwing businesses available. If yu find that this is nt a fit fr yu, please let us knw and we wuld be happy t prvide yu with ther pprtunities. The Firm makes n warranties r representatin in cnsideratin t the infrmatin prvided abve. All cmmunicatin regarding this business must ccur directly with The Firm Brkerage, LLC. thefirmbusinessbrkerage.cm 210 N 78th St Omaha, NE f

Specifications. RE: Architecture Firm with Professional Team. Business Overview. Established for over 30 years with a 25% profit margin!

Specifications. RE: Architecture Firm with Professional Team. Business Overview. Established for over 30 years with a 25% profit margin! Business Overview RE: Architecture Firm with Prfessinal Team Established fr ver 30 years with a 25% prfit margin! Specificatins Price $1,450,000 Prfit Margin 25% Service Area Hustn & Dallas Revenue $1,668,433