Gorgeous Established SE FL Art Gallery with Great Cash Flow

It has been a great 20 (+) year run for the owner of this outstanding SE Florida art gallery, but with plans for retirement approaching, the owner looks forward to a successful transition to the gallery’s next generation of ownership.

The 2300 square foot gallery is located in a lushly landscaped and unique retail oasis surrounded by upscale stores, including both national retailers and independent boutiques. Situated in an affluent coastal enclave with a vibrant arts culture, the Gallery caters to dozen of luxury gated communities. The area is easily accessible to seasonal and full-time residents through a local jetport. There are also major international airports nearby.

Since its inception, the Gallery has represented nearly 40 talented artists who have been carefully curated to complement one another and appeal to the in-demand coastal aesthetic. The Galley is an established destination for art lovers and collectors alike, and a valued resource for local and national interior design firms. The Gallery counts among its many clients prominent American and international families as well as captains of finance and industry.

And if you think the Gallery and its artwork are spectacular, let’s take a look at the financials. Over the last five years, the Gallery has averaged $1.1 million of annual revenue. 2025 five month YTD revenues are tracking impressively nearly a $1.5 million clip.

With so much wealth and good taste in the surrounding area, it is no surprise that there is no client concentration at the Gallery. The top ten customers in 2023-24 combined accounted for just 17% of total revenues which means that the Gallery has a broad and active client base, many of whom live literally within walking distance of the Gallery. Also, it hasn’t hurt that there are no nearby competitive galleries. And the Gallery’s has an outstanding cash flow as it has standard sale terms of “cash”, so the Gallery does not carry any A/R.

Over the past five years, the Gallery has recorded $300,000 (+) of average annual SDE (= seller’s discretionary earnings, the historical, normalized annual cash flow available to pay an owner and service debt) which when applied to a very competitive 3.12x SDE multiple results in a $988,000 list price for the Gallery, of which the sellers will carry a low six figure seller note for a qualified buyer. With only 10% down, the buyer’s 90% balance can be financed with a combination of SBA and seller 10 year term loans with a combined annual debt service estimated at $124,400. With annual SDE of more than $300,000, there is typically annual post debt service cash flow of nearly $200,000 available to pay the new owner-operator.

And how about these two stats: (1) the five year average debt coverage ratio is 2.55x which is about twice most banks’ expectations; and (2) the Gallery has no inventory cost in all the original artwork. The artists are more than willing to consign their original work to this prestigious Galley knowing that the Gallery will pay them in full on the day their artwork sells.

What’s not to love? To learn more about this terrific, high cash-flowing niche business with significant barriers to entry, please contact Mike Greengard ([email protected]) or call anytime: 616-450-0707.