Diverse Retail Offering with Multiple Locations

Price: Under Valuation

Annual Revenue: $3,220,000

Minimum Equity Required: $350,000

Location: Nova Scotia

Industry: Retail

ID: 1403

Status: Coming Soon

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 when the listing becomes live.

Financial Information

Shall be added/completed soon

Revenues:
2023: $3.22M
2022: $3.01M
2021: $2.72M

* 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 3 properties owned by the company:

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
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

There are 3 locations that are leased, all have the same landlord and all are on a new 5 year lease with an option to renew:
1. Approximately 8,000 sft - $72k (property tax included)
2. Approximately 4,500 sft -$39k (property tax included)
3. Approximately 4,000 sft -$56k (property tax included)

*Gateway Business Brokers operates as an independent contractor and is not an agent, employee, partner or broker of the Seller, Buyer or any other party and does not owe fiduciary duties to prospective Buyers. If the business Purchase involves a transfer of real estate, of any kind, the Buyer/Purchaser shall obtain the services of a licensed lawyer for the conveyance and land or lease transfer element(s) of the transaction.

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

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

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