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Longstanding Retail Garden Center

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Price: $1,049,000

Annual Revenue: $1,150,000

Minimum Equity Required: $350,000

SDE: $230,000

Location: Nova Scotia

Industry: Retail

ID: 1260

Status: Off Market

Description

This long-standing stable retail garden centre can be a dream to operate. Its two locations have been around for many years and the current owner does not work in the day-to-day operations, which leaves much potential for cost savings and increased revenues. This is a very easy to run operation that grows perennials, buys and sells bedding plants, soil & mulch and much more from two high-traffic locations. Their top sellers are hanging baskets and specialty planters, but the best opportunities for increased revenues are trees and shrubs.

There are 25-30 full and part-time staff providing consistent service to their customers who have come to expect consistent quality products. Combine that with great locations in their communities for 25+ years, and this supports prosperity for this business for years to come.

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

Revenues and Seller's Discretionary Earnings (SDE) have been stable over the years. There is much more upside than downside, especially given the reputation and location of the business. 2021 and 2020 Revenues averaged $1,085,000 while SDE has been in the $230k range.

*Seller's Discretionary Earnings have been adjusted to include a hypothetical rental amount of $25k, which is sufficient to carry a $300k mortgage on the real estate at 5% over 20 years.

** 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

Location 1: Located in a high traffic area and situated on approximately 1 acre of land, this leased location has been in operation from this location for approximately 25 years. The annual rent is $20k.

Location 2: Located in a high traffic area and situated on approximately 6 acres of land, with only a small portion being used, this real estate is owned by the company and has an approximate value of $300k, included in the asking price.

*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

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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