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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

Listing ID: 1330

Listing Status: New

Description

You're seeking long term stability in a business and you desire to be a vital part of wonderful growing community? Let's connect and determine if this business will support your life goals and dreams and if you would qualify to become the new owner of this 50+ year old furniture and appliance retailer.

Don't they always say location, location, location? You certainly can't beat this and nor can you beat a 50+ year reputation for providing quality products and services. This in the business sense = stability. Now, here's where it gets fun:

1. Are you real estate investment minded? Incredible location to transform this property into so much more, starting with the existing unused space that sits above the store, could become your personal residence or a rental unit. This is just the tip, as there are some significant possibilities here in a community that is desperate need for additional rental accommodations.
2. The owners are tired and have been working little in the business the last few years, allowing for staff to take care of much/most of the daily operations. Good for someone who wishes to work very little, great for someone who recognizes the potential in the business. We've worked with several of these businesses in the past and profits can be easily improved.
3. Part of a longstanding buying group, early pay discounts, purchase agreements, and supply discounts in place.
4. Many upgrades done to show room and building, in great shape and one can focus solely on the business.

The sale is structured as a sale of 100% of the authorized and issued share capital of the company. The asking price of the business includes $100k Working Capital, and will be adjusted accordingly on closing. Any working capital being acquired in excess of $100k would be extra. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most of your questions.

Financial Information

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

2024
Revenue: $1,538,000
SDE: will be calculated shortly

2023
Revenue: $1,515,000
SDE: $260,000

2022
Revenue: $1,720,000
SDE: $260,000

2021
Revenue: $1,495,000
SDE: $140,000

2020
Revenue: $1,420,000
SDE: $125,000

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

Real Estate

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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