Highly Profitable Specialty Retailer

Ocean City, MD

Seller Financing Available

Asking Price:	$1,600,000
Gross Revenue:	$2,350,000
FF&E:	$92,500

Cash Flow:	$500,000
Inventory:	$100,000
Established Year:	1984

Listing ID: 2309654Listing provided by BizBuySell

BUSINESS DESCRIPTION

This well-known Specialty Activity, General Beach Merchandise and Decor Company is located in Ocean City, one of the Mid-Atlantic’s most highly visited and desirable vacation destinations in the United States. The firm enjoys significant operating margins and documented profitability, and sees significant repeat business from clients seeking exceptional customer service and an extensive selection of curated goods.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 4.2x EBITDA (ttm). A full valuation report is included and there is $100,000 in Net Working Capital plus another $92,500 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $225,000 benefit in after- acquisition-debt cash flow in Year #1 – over 70% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)

DETAILED INFORMATION

Location

Ocean City, MD

Inventory

Included in asking price

Employees

Furnitures, Fixture & Equipment(FF&E)

Included in Asking Price

Facilities

This business currently operates from a 5,800 sq. ft. owned retail location with offices and warehouse space (available under separate purchase).

Competition

The company, with over 40 years in business, has a rich history in its community with a loyal multi-generational client base and knowledgeable workforce led by an experienced management team. The Company enjoys a strong competitive advantage in the service area by offering uniquely individualized customer experiences in contrast to on-line retailers. The Company has a solid foundation and is poised for accelerated growth based on tourism and increased home ownership in the region.

Growth & Expansion

It is projected that a new owner will obtain additional growth by expanding the on-line and mail order business with direct sales efforts and a minimal investment of $50k. The company projects incremental revenues of $200k - $300k per year with comparable margins.

Financing

$0.3m Seller financing plus $1m Bank financing subject to buyer qualification

Support & Training

A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.

Reason for Selling

Retirement (consulting available)

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