Bounce House & Inflatables for Event Rental w/ 92% Profit Margin - Business For Sale

3575

Working only a few hours a week, this bounce house/inflatables renting business is producing a 92% Profit Margin, putting almost $32,000 of Profit in the owner’s pocket. The owners take pride in offering great customer service, along with the cleanest and safest inflatable rentals in the area. This company is one of the few bounce rental businesses in Omaha, Nebraska that is certified by SIOTO, the Safe Inflatable Operators Training Organization.

With a growth of nearly 100% in profit from 2013 to 2014, this is the perfect business to continue to grow.

With a 15% [$9,300] investment to purchase the business, the Return on Investment (ROI) would be 241% in year one!

Location and Service Area: Located in Omaha, Nebraska and servicing all surrounding areas

Customer Base: Average 160 rentals/year – 60% Residential homes for parties and 40% commercial for churches & schools

Space Needed: 1 Stall Garage or ½ Storage Unit

Hours: April – October (Outside) November – March (Inside) Only a few hours/week

Growth Opportunities: More commercial clients during the week i.e. daycares and schools

Current Owner’s Responsibilities: Owner is a firefighter fulltime and in his off hours he takes incoming calls to schedule rentals. Also set up and take down of bounce houses

Financial Overview:
Gross Sales
2015: Through November $42,131 (191 Rentals)
2014: $33,318 (160 Rentals)
2013: $24,079 (120 Rentals)

Owner Profit/Cash Flow
2014: $31,190
2013: $17,889

Annual Expenses: $13,350

Profit Trend: Nearly 100% growth in profit!

Profit Margin: 92%

Multiple: 2.7

Fair Market Value: Cash Flow X Multiple = Price
$31,910 X 2.7 = $85,157
** Discount of over $24,000!

Income Sources:
Bounce House Rentals ($180-$350 per rental)
Generators ($75 per rental)
Slushie Machines ($100 per rental)

Assets Included in Purchase:
Equipment: 11 Bounce Houses (approx. $4,000/each) $44,000, 2 generators
Vehicles: Enclosed Trailer $6,000
Intangible Assets: Recurring customer base, website, and marketing materials
Additional Equipment: 2 Commercial Slushie/Margarita Machines $3,000, 20 sandbags and 50+ stakes
Upcoming Booked Events: 21

Funding Example:
Purchase Price: $62,000
15% Buyer Down Payment: $9,300
15% Seller Financing: $9,300
70% Bank Loan: $43,400

Equipment Loan would be fully collateralized!

Growth Potential:

More commercial clients during the week i.e. daycares and schools

Training/Support:

1-3 months

Seller Financing:

15%

Sale Reason:

Family Obligation/Growing Children