Big Profitable Hardware Store with Real Estate - SOLD
- Asking Price
This is a really nice business…We are pleased to offer 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 40 minute round-trip 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 a ¾ acre parcel which has both ample parking and space to expand the building for growth opportunities. The real estate (which is included in the offering price) has a market value of approximately $550,000. Also included in the price of the business is over $400,000 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 saw sharpening, etc.) to take care of all its customers’ needs.
The business, started in 1954, 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. The owner looks forward to selling his very successful store and retiring after giving the buyer ample transition training.
Now the numbers: the business generated the past four years average annual gross sales of $1.76 million while recording annual SDE (the normalized, historical cash flow available to pay a buyer and service debt) of $245,000. And impressively, the past two years, average annual revenues have exceeded $2.0 million with an average annual SDE over the same two year period averaging $300,000. The business, including $550,000 of real estate and $439,000 of inventory is being offered for $1.725 million. The seller plans to carry a six figure seller note for a buyer with appropriate 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 $170,000 down stroke with a $170,000 seller note, leaving $1.385 million required from a combination SBA term loan/mortgage. In this scenario, the buyer can expect annual debt service (SBA loan + seller note) estimated at $148,000, leaving the buyer $200,000 of annual post debt seller discretionary cash flow which includes $47,000 of annual rent paid to the buyer by the business.
For more information on this outstanding business opportunity with significant barriers to entry, please contact Mike Greengard ([email protected]).
- Reference ID
- Southeast Michigan