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Exceptionally Positioned Retailer of Backyard Oasis Products

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Complete NDA for Full Overview

Price: $849,000

Annual Revenue: $1,450,000

Minimum Equity Required: $500,000

SDE: $425,000

Location: Nova Scotia

Industry: Furniture, Home Furnishings and Equipment Stores

ID: 1413

Status: New

Description

With over 40 years of providing quality products and services, this well established retail business offers a focused range of products and services focused on the backyard therapies many desire and enjoy.

Located in a high-traffic area of HRM, a growing and loyal customer base, this business and industry is known for a few highs and lows in revenues over the last decade years. This business provides its owner with consistent profit margins and meaningful net profits in the 30% range.

There are ample opportunities for growth and diversification, for those who may be into outdoor furnishings, landscape construction, pool construction, hardscaping, renovations, etc....or, simply stay focused on the current product line and leverage your sales and/or marketing skills to grow the customer base. Regular training programs provided by dealers/suppliers support the staff to provide experienced and knowledgeable service to its customers.

The seller is motivated to move forward with the next stage of life. There are several opportunities for immediate growth, which have not been capitalized on in recent years based on desires and focus of the owner. With some new energy and commitment to delivering a meaningful service experience, your acquisition of this reputable brand in this specialty industry will start out on solid foundation with meaningful growth potential.

The owner is selling 100% of the authorized and issued share capital of the company. The asking price does not include real estate. 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 be sent a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

Financial Information based on fiscal year end December 31:

Revenue and COGS
$ 1,282,000 2023 53%
$ 2,002,357 2022 53%
$ 1,634,646 2021 52%
$ 1,430,333 2020 48%
$ 1,054,000 2019 53%
$ 1,666,000 2018 57%
$ 1,085,000 2017 56%

Average: $ 1,450,619 & COGS 53%

The posted SDE is the 4 year weighted average of the last 4 fiscal years. Based on the 8 year average revenues of $1.45M, COGS of 53%, and current expense profile, the SDE would be approximately $400k.

The normalized working capital of the company should be expected to be approximately $275k.

Annual Return on Investment
Based upon a purchase price of $849,000, with an average portion of the purchase price being financed with normal commercial finance terms, we anticipate an annual Return on Investment of more than 50% ** (Details of these calculations provided upon request).

* 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. Typical loan amortizations for businesses like this range from 7 years to 10 years. 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

The business operates from a highly visible 5,200 ft.² ground floor showroom and storage + 900 ft.² Office Mezzanine, where the local community and all those travelling by are able to easily recognize and patronage the operation. There is more than enough space for additional products to be displayed. Building serviced by on-site septic and water.

The asking price does not include real estate and is owned by a holding company.

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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