Seller Financing Available
CO Flower shop, $522K Rev, $92K Adj EBITDA, Growing
CO Florist, great location/employees, $522K Rev, $92K Adj Income
South Denver Colorado Florist. 2013's revenues were up 29% compared to 2012. The 2013 revenues were $504,806 and the adjusted EBITDA was $95,615. The trailing 12 months through August 31, 2014 were $522K revenue and $92K in adjusted EBITDA. They just recently raised their prices in September of 2014 to offset the recent increase in the cost to import flowers which should increase their profitability looking forward.
The owner has recently agreed to join the family manufacturing business that is much larger which is why she is selling. She has spent a lot of time helping the other business this summer which has had an impact on the flower shop. Revenues are still growing but she was slow to increase prices as the import price of flowers went up earlier in the summer and it hurt their profits for a couple of months. She has offset that increase now as all flower shops did earlier this summer and expects a great year.
The revenues are from online sales from their website, walk in traffic, a large customer base of over 8000 customers, monthly accounts, weekly accounts, wedding/event planners, referrals, recurring contracted work which comes from business, hospitals, funeral homes, event facilities, and an online “wire service” that sends them orders which they can chose to fill or not based on its profitability.
The new owner will have several ways to increase its already fast growth rate by working closer to 40 hours, being open during the farmers market on Sundays, adding space to the store, adding website optimization, and by hiring a salesperson. The current owner has made her family her highest priority. She works 8-3 Mon-Fri., doesn’t work weekends, and doesn’t take advantage of the large amount of people that go to a large local event on Sundays during the summer. She also recommends hiring a salesperson to call on event centers, planners, businesses, etc. but didn’t feel that she had the time to train and manage them.
The business is 10 years old and the employees are very loyal and passionate about what they do and to the business. It is a very positive work environment for either an individual or a family business. This business will not change the day after a new buyer becomes involved. The company has a prime location and with high internet sales, established accounts and a great reputation the new owner will walk into an established business that can continue to grow. In the owners words, “a new owner can continue to run the operation exactly like it is and pursue additional expansion opportunities.”
The assets include $81,000 of current value equipment including a lot of currently unused equipment in storage that would give the new owner the chance to expand into the space next to them or to open a 2nd location.
Sales Price: $300,000 down as part of a $350,000 total sales price. This business will qualify for a bank and/or SBA loan based on the size of its assets and profitable history. For more specific information, simply email Jeff Chapman at email@example.com. Just click on and fill out the NDA link: http://companybroker.com/buyer-profile-jeff.htm to get the sales package which has the financials and a video interview of the owner. Please fill out the Non-Disclosure Agreement, “NDA”, located in this link: http://companybroker.com/buyer-profile-jeff.htm If it is blue you should be able to click on it, if not please cut and paste that to a URL line and it will give you the NDA. By filling this out, you will have automatically requested the Full Sales Package containing a detailed data room with financials and a Comprehensive Video on the entire operation and a full interview with the owner. If you have any questions or comments on the NDA please email me at firstname.lastname@example.org. Thank you.
Business for Sale:
The owners are trustworthy people that enthusiastically want to find and support a new owner for continued success. They are a married couple with 2 kids and only she regularly works at the business.
There are 5 sources of revenue:
1) Location driven walk in traffic: The sales package will be able to provide more detail on this and has a link to a video walk through of the store which is automatically sent to you if you click on the link above and properly fill out the NDA. The store is in a perfect location in the middle of a very high traffic area(both foot and car) with ample parking and surrounded by other retailers. It is a central area that is so popular that there is a large local event every weekend during the summer around the store. The video will make it obvious that a new owner should add additional high margin merchandise to the store to compliment the flower sales. It would help sales to have the owner there for more hours every week also. The new owner may have the option of renting the space next door which would double their size or add a 2nd location. The 2nd location would be able to be managed from the main store which would also be the central distribution point. Either option would give them more room for an office, greater high margin merchandise, a salesperson(s), and for them to be able to handle more business during the biggest flower holidays. In addition the area is primed for growth over the next few years with the Towns plans for expansion.
2) Online: The on-line sales volume continues to increase based on their website and the use of the “wire service” that sends orders to them every day. The company has sold on-line for 6 Years and has a user friendly website that is not search engine optimized. There are other wire services that they could use also if they had more space. The owner has stated how exciting and profitable the growth in this area has increasingly become and there is still strong potential for additional sustainable future growth.
3) Business/Residential contracted recurring deliveries: These are the companies and customers that they deliver fresh flowers to on a regular and continuous basis which range from high end homes/businesses that wants fresh flowers every week to hospitals that they deliver to daily. This is one of the areas with a lot of potential to grow significantly. Hiring a commission based sales associate(s) to include business as their prospects would be a great way to increase the recurring non-holiday, high margin sales.
4) Holidays: This will naturally grow as the business continues to grow. The company doesn’t currently have the space or drivers to handle all of the Valentines and Mother’s Day orders. They actually stop taking orders when they get to the point that they can’t get them all filled and delivered. The new owner can add space and hire additional temporary drivers to be able to fulfill all orders all year long.
5) Event & Venue Coordinators & Planners: These are the people that coordinate large events and rely on hand picking the best people and companies to make them look good because they have delivered on their promises for their customers. This company has very dedicated employees that do a great job of filling special orders for the people that coordinate big events and venues. The owner feels that she should be more hands on in the larger events by helping to set up the flowers for the bigger events. Again, hiring a commission based sales associate(s) to include business as their prospects would be a great way to increase the recurring non-holiday, high margin sales by introducing them to more of these people.
Each of these sources of revenue are profitable and have had significant improvement in growth which can be increased.
Marketing, Advertising, and Growth Potential: The company has done very little pro-active marketing. The company does have a customer email data base of 8000 customers which is an inexpensive means of advertising that continues to grow. Owner does not do mass emailing and runs no specials or discounts to bring in new customers. Customers shopping in the retail stores are generally happy to provide their email addresses. They are in the yellow pages and have brochures and a nice website. They need to add a salesperson(s) who should be commission based. They believe the salesperson will be successful because they have won many awards and accolades which will help the sales effort to be more effective. The store needs more attention paid to merchandise especially their card and gift selection. The new owner should open on Sundays during the summer. The new owner should be more present and hand deliver big orders and help set up big events in the evenings and the weekends which will help get more venues and event planners to use them more often. Adding more space to the store by either renting the space above or beside them to add employees, merchandise, and inventory would help also.
Employees: The employees love what they do. The company employs 10 employees and adds some temporary employees for the holidays. They have many long-term employees and little turnover. The length of tenure and the low turnover rate means that employees know their jobs well. Ownership is comfortable leaving the business for vacations or to spend time with family based on the established systems, procedures, experienced personnel and the industry specific computerized point of sales system which is multi-functional.
Competition: There has always been competition but the company has maintained the largest market share of their market for 10 years now and has recently seen an increase in growth. Competitors offer lower end options and few of them offer the quality and excellent customer service. The company has been paired against competition for years yet has continually maintained or grown their market share.
Retail Store and Storage Facility Leases: The current retail store has 34 months remaining with the landlord. The lease is transferable and extendable which is important to any established business. It is believed that both of the leases can be easily extended if the new buyer prefers.
The main owner will help with a positive, supported, and successful transition of the business. The active owner is very interested in seeing the business prosper and will help as much as a new owner wants her to. The hard work is done and has proved the test of time. The seller is willing to carry a portion of the sales price and will offer full warranties, indemnifications, and further states there have not been any legal or other issues of any kind nor are the owners aware of any items pending. This is a rewarding, positive, profitable business and industry and could be an ideal fit for the right individual or family to acquire.
Thank you for your consideration.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.