* Included in Asking Price
Very well established retailer in the art, toy, and craft space, this company has been growing year over year without any real online presence. For the keen entrepreneur, we believe a focus on the online marketplace within Canada can add substantial value to the business, channels such as Amazon and Shopify, given several exclusive lines this company carries. The business has only just begun to focus on their on-line presence in 2020, given the changes in consumer needs based on Covid. (Business has done very well during this time, and over 80% of orders are being done electronically now)
From a staffing perspective, there are approximately 10 full and part time staff required to run
Hours of operation:
10 am - 7 pm M, T, W, F
10 am - 8 pm Thurs
10 am - 5 pm Sat
11 am - 5 pm Sun
POS system is state of the art and fully integrated. We feel there is a strong opportunity for new management to scale back on some of the expenses this company has incurred over the years. We know some business owner choose to incur expenses for various reasons, without any expected return or real value to the business. Let's connect and discuss some of these instances.
Revenues have averaged close to $800K over the past three years, with 2019 reaching $922K.
Seller's Discretionary Earning have been growing every year and have averaged $130K over the past 3 years, and reached $172K for 2019.
Average annual return on investment will be approximately 65%, based on an anticipated purchase price, with your 35% down payment for the business and working capital, and considers the 2019 SDE, after mortgage payments and after paying yourself a $50K salary.
The company carries approximately $250K in inventory and increases up to $300K during the holiday season. In addition to the Purchase price of the business, there would be approximately $180K in working capital that will need to be acquired, via term loan and/or operating line of credit. Working capital is primarily Inventory and Accounts Payable and will be calculated and adjusted accordingly on sale.
** Seller's discretionary earnings are the pretax and pre-interest profits before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. In addition, SDE may require that expenses be adjusted if a new owner will necessarily need to take on a new expense.
Minimum Equity Required
- total space of leased location is approximately 2614, which approximately 1600 is the actual store. Balance is office and storage.
- rent includes everything except insurance, internet, and phone.
$329,000 (Shares) + Inventory
Seller Reference #1186
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