Profitable Art Gallery with Large Digital Presence
- Asking Price
We are pleased to offer a very attractive art gallery located in the most desirable Lake Michigan shore community in West Michigan. This successful, profitable 40 year old business, capable of being relocated, is now in its fourth different location - leasing a cool two story, free-standing building with an adjacent outdoor sculpture gallery. And there is parking at the door.
The business has lots of assets besides it outstanding reputation and facility – it is owned by art aficionados, not artists. That means that there is a broad range of interesting art from both U.S. and foreign artists which of course makes the curated offerings much more appealing than a gallery concentrating on just the owner’s artistic endeavors. And the owners love to stress the points: (1) "In our previous experiences, we sold things that people needed and we always yearned to sell things that people WANT; and (2) “to be successful in the gallery business you do not have to be an artist, rather an experienced business person who knows how and likes to sell beautiful art objects.”
In addition, the owners do an outstanding job with digital marketing. This meant that (a) the business didn’t miss a beat during the Covid-19 shutdowns, and (b) business is generated during the January – April months when the Gallery is only open a few hours weekly (and just on Saturday). In 2021, the gallery booked 40% of its sales through its excellent digital marketing programs which of course give the art gallery a worldwide customer base.
The gallery has 3,000 square feet of indoor space and another nearly 10,000 square feet comprising an outdoor sculpture garden. The business offers consigned artwork from 700 exclusive artists worldwide with on hand art representing a retail value approximating $1,000,000. The gallery generates $600,000 of annual revenues with average SDE (seller discretionary earnings – the normalized annual cash flow available to service debt and pay the new owner) of $175,000 annually over the past four years.
This business is attractively priced by the retiring sellers at $449,000 which is 2.5x SDE. The price encompasses all non-cash assets of the business including of course the contracts with the artists and the above mentioned $1.0 million of on hand artwork, ready to sell. As part of the purchase price the sellers will give the buyers ample transition training with an emphasis on curating the collections and digital marketing. The seller will also carry a $50,000 seller note for a qualified buyer.
This seasonal business with minimal hours in the January – April period gives the owners the opportunity to take lengthy Caribbean vacations while the one part-time employee mans the store and packs and ships orders for artwork arriving from the digital marketing programs. Even in high season this very fun business keeps sane hours: six hours daily, Wednesday through Sunday.
This art gallery has it all: it is located in a desirable lakeshore community in a wonderful environment with grateful customers. It is as gratifying as a “lifestyle” business, except lifestyle businesses do not cash flow $175,000 annually. To learn more about this unique and extraordinary business opportunity, please contact Mike Greengard ([email protected] or 616-450-0707).
- Reference ID
- Art Galleries
- West Michigan - Lakeshore