Fireplace Equipment & Installation--Retail & Wholesale
Profitable growing affluent marketplace ... catch the wave!
Mountain View, CA
This business offers everything any northern California customer could possibly want related to fireplaces — mantels and hoods, inserts, wood stoves, outdoor barbeques and fire pits, gas logs and burners, surrounds, doors and screens, accessories, etc. It’s well-established, highly-respected, profitable, and growing.
In business for a decade, this store is the “go to” place for the discerning fireplace devotee … whether they’re a homeowner, contractor, or real estate developer. They are designers, fabricators, installers, and general contractors; but, the business has been planned and developed so that a new owner with no technical expertise or prior industry experience can step right in and grow the business even more.
They are authorized re-sellers for over twenty fireplace brands, including Lennox, Majestic, Spark, Napoleon, Marquis, Empire Comfort, Kozy Heat, Valor, Scan, Wittus, Escea, Jotul, Montigo, Element 4, Vermont Castings, Superior, Astria, Comfort Flame, Ironstrike, Solas, Modern Flame, Velsi, Amantii, Planika, R H Peterson, and Dimplex. These vendor relationships are hard to develop and extremely valuable.
With the business running efficiently and profitably and with a steady and impressive growth trend, the owners have decided to offer the business for sale, provide for an orderly smooth transition, and pursue their well-earned opportunity to travel and pursue other interests.
There are four employees; all expected to stay under new ownership. In addition, there are four installers who work on a contract basis.
Market Potential: A successor would infuse the company with new energy, enhanced marketing exposure, an expanded territory, outside sales, and possibly complementary lifestyle product offerings such as spas, saunas, outdoor patio structures, and water features.
Financial Summary: The owners report annual sales of approximately $2,000,000 with Seller’s Discretionary Earnings (“SDE”) of approximately $270,000. Detailed financial information for the past few years, including 2014, is in preparation; however, approximate historic sales figures are: 2012—$1,200,000; 2013—$1,500,000; 2014—$2,000,000. Because its unique nature makes this business easily identifiable, this offering is highly confidential. Complete historic financials will be made available to serious bona fide buyers only after a preliminary discussion with the broker and owner.
Facilities: The business is housed in a retail store with office and warehouse space. The premises comprise 3,800 square feet at a monthly rental of $5,750; the lease is available for at least the next six years, with the possibility of extending it further.
The Transaction: The deal structure will be a sale of all assets corporations (including all physical assets, trademarks, good will, name, customer records, etc.,) excepting accounts receivable, accounts payable, and cash on hand. Inventory will be included. The business is priced at a reasonable* asking price of $1,495,000, including inventory (typically ~$200k), Seller financing up to 20% of the sale price may be available. (*See the "Value Proposition," below.) The seller may be somewhat flexible on the price subject to adjustment depending on the deal structure, financing, and timing.
The business is an excellent acquisition target for (1) a contractor already in the industry, (2) a retailer already in the industry, (3) an individual with entrepreneurial zeal, (4) a hands-on owner operator looking for a turn-key successful business, or (5) an absentee or semi-absentee investor who will hire operating management.
The Seller is very open to a reasonable transition period in order to assure that the new owner is fully trained and that existing business is retained.
(1) 5x SDE of $270,000=$1,350,000 plus Inventory of $200,000 = $1,550,000
(2) 75% of gross sales : $2,000,000 x .75 = $1,500,000
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by Broker as to accuracy. Broker has made no independent verification of the data contained herein. Buyer is advised to perform its own independent due diligence and seek the advice of professionals prior to purchasing the Business.
Profit & Loss Statements, Monthly Sales Figures, and Furniture, Fixtures, & Equipment (“FF&E”) will be provided to serious bona fide buyers after a preliminary discussion with the broker and owner.