Outstanding Retailer of Furniture, Appliances, and More

We are delighted to present this attractive opportunity to own a West Michigan business with a legacy spanning a century. This successful retailer has withstood the test of time thanks to a robust offering of products and top-notch sales and customer service including (but not limited to) furniture, appliances, flooring, and outdoor equipment. The aging seller seeks to retire to focus on health and family, creating this excellent opportunity for a qualified and well capitalized buyer.

Located in a West Michigan Suburb and operating out of an impressive piece of (owned) real estate (included in the listing price) with total square footage nearing 60,000. Location plays a pivotal role in this retailer’s ability to maintain its status as a market leader. Retail, service, showroom, and climate-controlled warehousing are all under one roof. This purpose-built facility is included in the offering at a value of $2.4 million.

Great real estate is just “a piece of the pie” when it comes to this opportunity. The business which has stood the test of time as a stand-alone retailer attributes its success to quality products and personalized service. In-house service technicians and a delivery team compliment cross-trained sales staff. In addition, sound sub-contractor relationships help to fill the gaps for flooring installation; yet another product/service this business has to offer.

The retailer has maintained a long-standing buying group membership which affords competitive pricing on par with the larger chains while maintaining the quality customer service you expect from a locally owned business. The presence of this business is such that there is not a direct competitor within 45 miles.

Now let's talk numbers. Sales over the past 4 years have exceeded $6 million annually, while normalized annual SDE (seller’s discretionary earnings = cash flow for the buyer to service debt and pay himself) averaged a very impressive $1.0 million annually over the same 4 year period. This business is competitively priced at $5,545,000 which is the sum of 3 key components: (1) a conservative 2.0x multiple of annual SDE ($989,372 x 2= $1,978,744) plus (2) $1.18 million of salable cost basis inventory and (3) real estate with an appraised value of $2.4 million. In addition, a buyer receives the goodwill of a well-known and highly regarded business spanning multiple generations.

The seller anticipates an asset sale in which he retains cash and A/R while retiring all liabilities. The buyer receives all furniture & fixtures, all fixed assets, inventory, and the purpose-built real estate. Sellers will contemplate a meaningful seller note for a well-qualified and vetted buyer.

Contact Ryan Johnson at Praxis Business Brokers (269-338-9809 or [email protected]) today to learn more about this excellent business opportunity.