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Asking Price$542,803
Revenue$617,948 EstablishedUndisclosed
Cash Flow$124,708 EmployeesUndisclosed
FF&EUndisclosed FranchiseNo
InventoryUndisclosed RelocatableNo
Real EstateUndisclosed* Home-basedNo
* Included in Asking Price
Location
Rural Cape Breton

Description
The "I love local" movement is strong and healthy and this is especially evident with this small town business. Their purpose to supply the local communities with household furniture and appliances more effectively than any of the big box suppliers. With direct relationships with many manufacturers, including names like Whirlpool, Amana, Maytag, Dreamstar, and McGregor, this operation has been able to set itself up independently of any buying group or franchise. The market for this business is strong and the business is on an uptrend since the owner moved back to the area and began working in the business in 2019.

This business has been set up to operate with simplicity and no frills. There is no web-site, no financing options, or warranty options available. There are no glossy, radio, or internet advertising programs, just community bulletins, word of mouth, and Facebook. There are no complex systems, just good old pen and paper + Simply Accounting. The focus is simple, supply quality product and excellent service at low prices without any strings attached.

Total Staff: 3 - 4 part time. (Administrative, sales, and delivery + Owner)
Reason for selling: Retirement (late 60's). The Owner has owned the business since 2004, moved out of Province in 2009, returned to area in 2019 and has been hands on since.

Financial Information (Canadian Currency)
Fiscal year end is September 30th

2020 Revenues: $773k and SDE of $156k
Working Capital of $128k. (Inventory: $100k, A/R: $112k, Current Liabilities: $84k)

2021 Revenues: expected to hit or exceed $1,000,000 and generate SDE of $230k (YTD is up over 35%).

* SDE - 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. SDE is after mortgage payments and return on capital of 8% for the proposed real estate investment.

Included in our SDE calculations is $24k available for mortgage payments on the real estate. There is not a mortgage today, we have allocated this expense in our calculations to arrive at the true cash flow of the "business". As an example, a $230k mortgage on the real estate, with 5% interest, 20 year amortization, would be approximately $1500 per month.

Please note, in addition to the purchase price, the successful Buyer will need to take over the working capital of the business. This is negotiable.

Minimum Equity Required
$275,000

Real Estate
Real estate included in sale price:
- approximately .6 acres of highway frontage
- approximately 3800 sft of building, showroom and warehousing
- drilled well and septic

Buildings are in good condition and align with the overall fit and feel of the business. No frills, just quality product and service at a great price. That being said, it should be expected there are 2 buildings that will require new roofs within the next 5 or so years.

Price
$679,000 (Share Sale)
Ad #125550
Seller Reference #1220
The information in this ad has been provided by the business seller or representative stated on this ad. BuyBusiness.com has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Please read our Terms of Service before responding to any ad on our website.
Contact This Seller
Tim Blais, BBA, CMEA
Gateway Business Brokers
1-855-537-0773
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