Power Equipment & Hearth Business – SOLD

Contact: Mark VanderWal
Phone: 616-206-4460
Email: [email protected]
Your Reference ID: MV1040416

Description:

Premium product lines define this outdoor power equipment and hearth retailer.  The founders/owners have succeeded by working diligently since their grand opening eight years ago to get the business firmly established in the market.  However, retirement has come knocking on their door, and they now look to hand over the keys to only the company’s second owner.  Their retirement plans could be your opportunity to work for yourself, while building on an already established phenomenal rapport with a broad base of “salt of the earth” customers.

The leased 1500 square foot, West Michigan showroom is in a newer, free standing building on a state road in a very desirable community. In addition to the excellent location, the store is beautifully displayed and professionally merchandised. Since the beginning, the company’s successful strategy has been to offer the highest quality product lines available in each segment, supported by unmatched product knowledge. The two owners man the showroom daily providing service and sales support to their growing list of new and repeat customers. Product sales are supported by the well managed inventory in a contiguous 1300 square foot warehouse.  Marketing efforts have been minimal as the sellers have been content with the business “as-is” for the past three years.  Growth opportunities would seem apparent through a basic marketing plan that would include extending store hours, advertising, product line extension, and considering additional store location(s) already identified by the sellers.

Revenues have been steady each of the past three years, averaging over $550,000, resulting in an impressive $110,000 of SDE (Sellers Discretionary Earnings – the cash flow available to pay an owner/operator and service debt).  An attractive 2.5 X SDE asking price of $275,000 includes the business goodwill and FF&E (Furniture, Fixtures, & Equipment).  Inventory, currently valued at $162,000, can be purchased separately at close. As part of the purchase price, the sellers plan to support a new owner with both ample training and vendor transition while financing the entire business portion for a qualified buyer.

For more information on this attractive lifestyle business opportunity, please contact Mark VanderWal (mark@praxisbusinessbrokers.com).

Location(s): West Michigan

Asking Price: $275,000
Cash Flow: $110,000
Gross: $550,000
Inventory: $162,000

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