New and Gently-Used Children’s Resale
Offering convenient buying and selling options to customers, this reseller of new and gently used children’s items is in a prime location allowing them to buy and sell clothing every day. This location has contributed to over a million dollars in sale year-over-year. This store is currently doing 5% new clothing and 95% resale. Featuring brands such as: Polo, Playskool, VTech, Disney, Carters, OshKosh, Justice, and more, this is not your typical second-hand store. It is located in a great part of town and is constantly flowing with clientele.
This franchised business concept offers parents an easier and more cost efficient way of providing the best for their children without breaking the bank. Lincoln has a population of over 280,000 people with a median age of 31, which drives both buying and selling transactions. The staff of 14 (1 full time Inventory Manager and 13 part time employees) are knowledgeable about child safety and committed to providing a safe environment to shop, and safe products to buy for all. A computerized inventory system assists with appropriate pricing and tracks what clothing sizes and categories are needed.
This business is being sold at a discount of $98,482 due to the owner’s health. After all debt services are paid, a new owner can expect a Net Operating Income (Profit) of $86,753. That is a 309% Return on Investment in year one of ownership.
2016: $971,988 (annualized)
Gross sales breakdown: 5% new clothing & 95% resale
2016 Gross Sales impacted by owner health issues and lesser involvement in day-to-day operations
Owner Profit/Cash Flow
Profit Margin: 13%
Valuation: 2016 Ann. Cash Flow x Multiple = Price
$132,801 x 2.85 = $378,482*
*This business is being sold at a $98,482 discount due to the owner’s health.
Assets Included in Purchase: $282,386
*amounts may vary
Purchase Price: $280,000
10% Buyer Down Payment: $28,000
20% Seller Financing: $56,000
70% Bank Loan: $196,000
After all debt services are paid, a new owner can expect a Net Operating Income (Profit) of $86,753. That is a 309% Return on Investment in year one of ownership.
Custom Apparel Design and Sales
Located in a prime retail space in Gretna, this custom apparel sales business has served the Omaha area for over 20 years. Services provided include, t-shirt and apparel screen printing and embroidery, team uniforms, logo design for businesses and organizations, and photo printing. Logos and designs can be placed on jackets, t-shirts, and sweatshirts and even tote bags.
Currently the business is outsourcing all embroidery and screen printing services. New owner does not need to know how to do these services as it has been outsourced for over 15 years. Of the 186 screen jobs that were done in 2015, 100 of them were repeat clients.
Operated in Gretna, Nebraska, this business draws customers from Omaha and all surrounding areas. An excellent retail location draws walk-in business where customers can order a customized shirt and leave with it the same day. Group orders for numerous organizations and businesses including construction companies, sports teams, and churches, are also accepted.
This business takes great pride in providing quality service and products to their customers. Growth opportunities include adding to existing awards and types of apparel currently offered.
The net operating income a new owner could expect is equal to $16,676 after debt service. This represents a 115% return on investment on a $14,500 down payment in the first year of ownership.
List Price: $58,000
Owner Profit/Cash Flow
Sales Trends: Consistent sales over $150,000
Profit Margin: 16%
Valuation: 2015 Cash Flow x Multiple = Price
$24,421 x 2.6 = $63,494
Purchase Price: $58,000
25% Buyer Down Payment: $14,500
10% Seller Financing: $5,800
65% Bank Loan: $37,700
Conventional loan options available with the value of inventory and equipment fully collateralizing the loan.