Large, Established, Profitable Flower Shop
It has been a great 36 year run for the owner-operator of this upscale, attractive profitable flower shop and retailer of home décor accessories. Located in a suburb adjacent to an important mid-Michigan city, the owner of this successful and surprisingly large business is ready to transition his business to only its third owner. After an appropriate training period, the seller plans to retire.
The business has been located throughout its entire history in a wonderful, free-standing 1400 square foot building. The store offers a cozy environment in which it generates on average an impressive $600,000 of annual sales. The business is ideally located at an important, busy corner at the intersection of two major surface streets. A favorable, assignable lease has nominal rent of only 2.0% of revenues, and there are dedicated parking spots 20 feet from the store’s entrance. Expanding the store’s 45 weekly business hours could present an attractive growth opportunity.
With 11 loyal and talented employees (several of whom are trained floral designers) and a host of seasonal workers, 50% of sales are derived from business and organization clients, 20% from weddings and 30% from general retail including holidays, special days, graduations, parties, and the like.
The business, which records more than $100,000 of annual SDE (seller’s discretionary earnings - the normalized cash flow available to pay an owner-operator and service debt), is being offered for just $215,000, an attractive 2.1x multiple of SDE. $40,000 (cost basis) of salable inventory is additional. The purchase price includes: (1) all furniture and fixtures; (2) a user friendly and very functional POS system; (3) an impressive and very active website; and (4) two delivery vehicles. In addition, to expedite a timely sale, a meaningful seller note will be available for a qualified buyer. Finally, this well-established business has solid, professionally prepared financial statements which should ease the due diligence process.
Internet sales generated through the company’s website which had been approximately 60% of revenues, exploded to near 90% during the Covid-19 shutdown (and its aftermath). The seller feels there are still solid growth opportunities through expansion of the company’s internet and social media presence. In addition, a more energized owner should be able to expand the home décor accessories percentage of sales from its current modest 10% level.
The seller contemplates an asset sale in which he retains cash and A/R while all other asset categories will be included in the sale price. Additionally, the seller will be responsible for retiring all liabilities at or before closing. For more information on this attractive, niche business opportunity, please contact Mike Greengard.