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Diverse Retail Offering with Multiple Locations

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Complete NDA for Full Overview

Price: $589,000

Annual Revenue: $1,800,000

Minimum Equity Required: $350,000

SDE: $282,000

Location: Nova Scotia

Industry: Retail Trade

ID: 1403

Status: New

Description

Discover this community staple retail business positioned in a high-traffic locations, with owned and leased real estate, offering experienced hands on retail operators an attractive choice to capitalize on consistent revenue streams and the ability to create immediate increased profitability.

Can be purchased as a whole or possible to split up the 5 locations.

- Annual revenues growing at a rate of 8%.
- Consistent Gross profit margins of 45%
- Ideal locations in the communities served, long history of customer patronage from a broad customer base

Based on the current owners length of time in business, he's certain each location's profit can be increased by $50k or more with a hands on owner who is engaged with the community and managing inventory more appropriately.

The owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be sent a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

* Please note: The Revenues & SDE as advertised is based upon 3 locations of the business.
The asking price does not include inventory, which carries a 50% - 60% profit margin.

Annual Revenues and Seller's Discretionary Earnings, for the 3 locations, with year end February 12:
2023: $1.81M, with SDE of 280k
2022: $2.07M
2021: $2.14M

3 year average revenues of $2.01m and SDE of $380k (19%)

Annual Revenues and Seller's Discretionary Earnings, for the entire grouping, with year end February 12:
2024: $2.84M, with SDE of 415k
2023: $3.22M, with SDE of 446k
2022: $3.01M, with SDE of 456k
2021: $2.72M, with SDE of 439k

Total inventory for the 3 locations is anticipated to be in the $1.3M 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.

** Please refer to our Minimum Equity requirements. Our expectations are for a buyer to be "capable" of making a minimum 35% down payment on the final negotiated purchase price, to be considered truly qualified. 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

There are 2 locations that are leased, with the 3rd location being an owned property, with the selling willing to sell or lease. All are on a new 5 year lease with an option to renew:

1. Approximately 8,000 sft - $72k (property tax included)
2. Approximately 4,000 sft -$56k (property tax included)
3. Approximately 6,000 sft, - $50k (plus property taxes. This is the owned building, option to purchase available, expected value of $500,000)

In total, there are 3 properties owned by the company, which could be purchased:
1. Approximately 6,000 sft building, prime downtown location, located on 6,400 sft, city water and sewer - (operates from) - approximate Value of $500k
2. Approximately 4,700 sft building, prime high traffic commercial district, located on 1.31 acres, city water and sewer - (operates from) - approximate Value of $1M (not included in this asking price.
For more information please visit: https://gatewaybusinessbrokers.com/listing/diverse-retail-building/.
3. Approximately 4,700 sft building, prime downtown location, on 12,550 sft , city water and sewer - leased as investment, with long term lease in place currently at $44k annual. Approximate Value of $500k

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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