Successful West Michigan Flooring Company
- Asking Price
- $495,000
- Cashflow
- $190,000
- Gross
- $1,300,000
We are pleased to present this excellent opportunity to own a West Michigan flooring company with a large, protected franchise territory. After a successful run, the sellers are transitioning to a new career opportunity in non-competitive endeavors.
Located near a large metropolitan area, this business has succeeded by providing quality service, timely delivery and excellent customer service. The company operates out of a leased 2000 sq ft building with office and warehouse areas.
The business is operated by two full-time employees who complement current ownership with sales and operations management. Several qualified and experienced sub-contractors assist with installation of many types of flooring including hardwood, vinyl, plank and laminate.
The business boasts a number of positive attributes including:
• Average annual revenue of $ 1,300,000 in the past three years
• SDE (seller’s discretionary earnings) has averaged an impressive $ 190,000 during the same three-year period.
• A large, protected territory near a major metropolitan area with significant growth potential
• Solid relationships with several long-term repeat customers.
• Mobile showroom brings thousands of samples to customer locations.
The company is being offered at $ 495,000 using an attractive 2.6 X multiple of SDE. To ensure continued success, the owner will stay on for a lengthy transition period (if desired by the buyer) and will hold a meaningful seller note for qualified buyers.
A typical deal for the purchase of this attractive business is as follows. $50,000 (10% of purchase price) buyer cash is matched by a $50,000 seller note, with the balance financed by an SBA term loan. With this structure total annual debt service would be approximately $66,000 resulting in a post-debt discretionary cash flow for the buyer of an average $130,000 for the past 3 years.
The sellers anticipate an asset sale in which they retain cash and A/R while retiring all liabilities. The buyer receives all furniture, fixtures, fixed assets and inventory.
If you are searching for a successful business 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 [email protected]
Contact information
- Inventory
- N/A
- Reference ID
- SH10825
- Categories
- Construction, Construction services
- Locations
- Michigan, West Michigan