Iconic Craft Ice Cream Company with Liquor License

FEBRUARY 08, 2024

It’s been a great 10 year run for the founder of this health-conscious confectionary business located in a large and desirable West Michigan city. After years of building this successful company into a name brand entity, the owner is now ready to assist a new owner operator in the next phase of the business.

This delicious opportunity offers a variety of revenue streams including retail, wholesale and catering. To ensure the highest product quality, all ice cream recipes are made in house. The company offers several different “better for you” healthy choices including gluten free, dairy free and vegan. Flavors including alcohol are also available (the business comes with a full class C liquor license) and is served in floats, shots over ice cream, wine sorbet and the like. A registered trademark has been granted for one of their iconic products.

In house retail sales represent the largest segment of business with wholesale and catering also contributing to the bottom line. Products are also shipped nationwide to an attractive list of loyal and recurring customers. The business operates out of an attractively appointed 3125 square feet facility in a busy downtown area with significant foot traffic. Customers, coming from all over Michigan to taste the delicious confections, find ample parking always available. Two years remain on the current lease with extension options available. Rent on this ideally located space is competitive at 11% of revenues.

Areas of opportunity include the expansion of catering operations, increasing brand awareness and adding additional store fronts. The work force is self-directed (follow established procedures) and require minimal supervision. Additionally, the seller has agreed to remain for a thorough transition period with a consulting option to stay longer if required for recipe/product development, strategic planning, etc. The sale includes $264,000 of fixed assets (equipment, etc.), recipes and of course the class C liquor license. Inventory is also included which was valued at $60.000 in early 2024.

The business weathered the Covid storm in 2020 and even grew 4% in 2021 over 2019 levels. Revenues increased over 10 % in 2023. The company also has an outstanding website that gives customers insight into the unique and tasty ice cream products offered. The company’s outstanding reputation is backed up by its excellent review ratings on Google, Yelp, Trip Advisor and Facebook.

Investment Highlights

Average Revenue (2 year): $630,000

Average SDE (2 year): $125,000

Liquor License

Brand Name

Loyal & Trained Work Force

With a favorable SDE multiple of 3.0x, the business is attractively priced at $399,000. The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. For a qualified buyer the seller will carry a meaningful note.

A typical deal for the purchase of the business looks great with $40,000 (10% of purchase price) buyer cash, a matching $40,000 seller note, and the balance financed by an SBA term loan. Total annual debt service will be approximately $51,000 which would have resulted in a post-debt discretionary cash flow for the buyer of $80,000 in the past three years.

If you are searching for a successful cash-flowing business priced under $400,000 with a unique product and brand that is located in a growing and desirable region of West Michigan, this business represents an exceptional opportunity. For more information, please contact Steve Huntley at 616 902 0898 or shuntley@praxisbusinessbrokers.com.

Asking: $399,000
Cash flow: $125,000
Gross: $630,000
Reference ID SH4824
Location(s): West Michigan
Categories: Restaurant & Bar, Restaurants, Retail - food

Contact information

Steve Huntley
shuntley@praxisbusinessbrokers.com
616 902 0898