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50+ year old Furniture and Appliance Retailer with Prime Real Estate

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Complete NDA for Full Overview

Price: $1,149,000

Annual Revenue: $1,600,000

Minimum Equity Required: $460,000

SDE: $260,000

Location: Nova Scotia

Industry: Retail

ID: 1330

Status: Off Market

Description

10% on the first $500,000 of the price of the business; 8% on the remaining price of the business and; 6% on the real estate

Financial Information

Annual Revenue and Seller's Discretionary Earnings. Company's Fiscal Year end is February 28th.

2023
Revenue: $1,496,000
SDE: Currently Being calculated.....

2022
Revenue: $1,735,000
SDE: $220,000

2021
Revenue: $1,510,000
SDE: $205,000

2020
Revenue: $1,440,000
SDE: $180,000

NOTE: SDE has been adjusted to include a $51K annual fair market value rental equivalent (expense), which is more than sufficient to cover a mortgage for the real estate of $600k

Balance sheet items: Company typically has $150k - $180k in inventories, $50k in payables, and $125k in A/R. Total working capital requirements are in the $225k - $250k range.

* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
 
** Our expectations are for a minimum 35% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Operations

Company owned property, prominently situated in a high visibility high traffic location, expected to be valued in excess of $800k. There is ample development opportunity here for someone with vision and capacity.

Approximately .4 acres, being one of the largest parcels of land in the downtown core of this community, just a few short steps to the water's edge, a few blocks from the marina, and incredible views if developed for your personal residence, as it was once used for in the past. Tons of possibilities here in addition to the longstanding business!!

The building comprises of show room, storage, and maintenance space, totalling over 22,000 sft.

New 7 head heat pump system installed August 2022. Previous, primary heat source was oil furnace, still operational as needed.
Water supply is town water supply
Municipal sewage disposal.

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA For Full Overview

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA for Full Overview
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