Business For Sale Listing 158276
Iron Works, Decorative Wood Work Furniture
Status as of Jan-6-2009 at 05:59 PM: Active
Business Summary
Fully integrated – manufacturing (through sub-contractors), wholesale, and retail – iron works, decorative wood work furniture (rustic, painted frames) & art (one vendor is renowned Baja California artist). Busy retail during 6 month “Summer Season”: April through September. More emphasis on wholesale business during “Winter Season”: October through March. Prime Tourist Area in Rosarito, Mexico.
Owner used family – nieces & nephews (manager); requires minimum of 2 – one for the financial side - handling money & books; the second for selling.
Although this is an all cash deal at the $225,000 firm price, seller will sell the business for $65,000 and give a lease on the owned property for 5 years at $800/month, plus a five year option at 10% increase, plus an option to sell the property for $212,000.
After reducing the $150,000 earnings by the $9,600 per year lease ($800 per month), the SDE would be $140,400, and, on the $65,000 price, the price to SDE ratio would be 0.46X.
Seller may have an experienced operator, who ran a larger business in nearby location, who would run the business for 50% of the cash flow. Operator believes income would be $200,000+. This could give a $100,000 return (for the 50% share) on the $65,000 investment for an absentee owner. This would be a price to Seller's Discretionary Earnings (SDE) earnings ratio of 0.65 on an absentee owner basis – subject to Buyer’s approval of the joint venture manager – who would at all times be an at will employee of the Buyer.
Monthly sales $55-60K Summer - more retail; $35-45 Winter - more wholesale.
Categories
Industry
Location
Financials
| Sales: |
Between $500 Thousand And $1 Million (500,000) |
| Profits: |
Between $100 Thousand and $500 Thousand (150,000) |
| Profit Type: |
Seller's Discretionary Cash Flow (SDCF) |
| Asking Price: |
Between $100 Thousand and $500 Thousand (225,000) |
