Big, Established, & Very Profitable Hardware Store
This is every man or woman’s dream business – a large, attractive, bustling, super profitable hardware store located in an idyllic, upscale SE Michigan waterfront village. And it gets even better: there is not another hardware or big box store within a 20 minute one-way drive.
The business comes complete with a late model 7,500 square foot facility with adjacent, at-the-front door parking. The building sits on ¾ of an acre which has both ample parking and space to expand the building for growth opportunities. The real estate has a market value of approximately $550,000 and is included in the price of the business. Also included in the price of the business is over $300,000 of every conceivable SKU of branded hardware items. There are also two seemingly unrelated (to hardware) and surprising profit centers which you will have to submit an NDA to learn about. Last, but not least, the business of course has several repair centers (windows, screens, pipe threading, blade & chain sharpening, etc.) to take care of all its customers’ needs.
The business started in 1954 and has been in the seller’s hands for the past 20 years. The business has six full-time employees including a well-paid, knowledgeable, and respected manager who is a “lifer” in the hardware business. The owner looks forward to selling his very successful store and retiring after giving the buyer ample transition training.
Now the numbers: the business generates annual gross sales of $2.0 million while recording annual SDE (the normalized, historical cash flow available to pay a buyer and service debt) of $300,000. The business, including $550,000 of real estate and $335,000 of inventory is being offered for $1.83 million. The seller plans to carry a low six figure seller note for a buyer with industry experience.
The seller envisions an asset sale in which he retains the cash and minimal A/R while retiring all liabilities. The seller will match a buyer’s $200,000 down stroke with a $200,000 seller note, leaving $1.43 million required from a SBA term loan. In this scenario, the buyer can expect annual debt service (SBA loan + seller note) estimated at $143,000, leaving the buyer over $150,000 of post debt service discretionary cash flow.
For more information on this outstanding business opportunity with significant barriers to entry, please contact Mike Greengard ([email protected]).