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Established International Commercial Architecture and Design Firm Based in New England

Dedicated seller who wants to help the business move forward and grow post sale

CASH FLOW
$302,274

Specifications

  • Price
    $1,100,000

  • Revenue
    $3,000,000

  • Cash Flow
    $302,274

  • Down Payment
    10%

  • Multiplier
    3.60

  • Location
    Boston, MA

  • Service Area
    New England & Overseas

  • Reason for Sale
    Recently married and relocating out of state

  • Employees
    8 – 1 Design Director, 1 Senior Designer, 1 Senior CAD Designer, 1 Designer, 1 Purchasing Agent, 1 Junior Designer, 1 Renderist, 1 Bookkeeper Seller

With an affluent worldwide client base, the current owner of this profitable Boston based design and architecture firm is willing to stay on for 2-4 years to help ease transition and is offering 20% financing as a show of good faith in the business moving forward. This firm serves international clients, with areas of service including New England, the Middle East, the Caribbean, Midwest U.S., Texas, and more! Established in 1989, the firm’s work is recognizable from Times Square to Saudi Arabia, and they’ve built a high reputation world-wide. Focusing on interior architecture and mostly commercial clients, the firm has more than 220 hotels & restaurant projects under its belt. Though they mostly focus on condos and hospitality, they are also able to take on diverse projects, with examples ranging from fitness centers, health clubs, country clubs, cafes, entertainment venues, aquariums, planetariums, and even palaces! They have directed projects in excess of $5 billion and enjoy a history of awards and recognition as a leader in the industry. We based our valuation of this company on the 2019 (pre Covid) and 2022 projected (post Covid) numbers due to the fact that the 2020-2021 numbers are not in tune with continuing operations for the firm.

 

The business is best known for their timeliness and their guarantee to always be on budget. This design firm is a very well known in the Boston area and most clients are acquired through word-of-mouth referrals from completed contracts. Along with a great reputation, they also have excellent personnel. Employees include 1 design director, 1 senior designer, 1 senior CAD designer, 1 designer, 1 purchasing agent, 1 junior designer, 1 renderer, and 1 bookkeeper. Creating additional marketing plans and increasing in-person sales are options to help continue to grow this business. The firm is currently under contract for a 10,000 square foot restaurant and six other restaurant venues.

 

Priced at $1,100,000, this is a business opportunity with outstanding growth potential. The owner does not do any drawing or CAD work but oversees overall strategy and interfaces with key employees. The current plan is also to expand staff to include two more senior designers and an intern. 

Business Highlights

  • Year Established:1989
  • Location: Boston, MA & Overseas
  • Service Area: New England
  • Clients: Mostly commercial with a focus on condos and hospitality industry
  • Services: Interior Architecture, Design and Procurement
  • Office Space: Open design for work, private conference space, kitchen, bathroom and storage in basement, parking available 
  • Reason for Selling: Recently married and relocating out of state
  • Personnel: 8 – 1 Design Director, 1 Senior Designer, 1 Senior CAD Designer, 1 Designer, 1 Purchasing Agent, 1 Junior Designer, 1 Renderist, 1 Bookkeeper
  • Seller Training Period: Owner would stay for a period of 2-4 years
  • Growth Opportunities: Increase marketing, more in-person sales
  • Current Owner’s Responsibilities: 3.5 days of oversight 

Financial Highlights

  • List Price: $710,000

  • Cash Flow:
    • 2019: $304,548
    • 2018: $126,837
  • Assets Included in Purchase*
    • Equipment: Office Equipment, Computer Equipment
    • A/R: $344,628
    • Intangible Assets: Amazing reputation, worldwide recognition, variety of designs  

*amounts may vary, assets may be depreciated, replacement cost, or fair market value 

Clients

  • Hotels
  • Condominium Owners
  • Fitness Centers
  • Cafes
  • Country Clubs
  • Event Venues
  • and More

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Interior Architecture
  • Interior Design
  • Design Procurement
  • Exterior Improvements
  • Laser-Cut Paneling
  • LED Lighting
  • Outdoor Installation

Service Area

Personnel

  • 1 Design Director 
    • 26 Years at Business
  • 1 Senior Designer
    • 5 Years at Business
  • 1 Senior CAD Designer
    • 6 Years a Business
  •  1 Designer
    • 4 Years at Business 
  • 1 Purchasing Agent
    • 1 Year at Business
  • 1 Junior Designer
    • New Employee
  • 1 Renderist
    • Per Project Contracted
  • 1 Bookkeeper
    • 1 Year at Business

Growth Opportunities

  • New Marketing Campaigns
  • More In-Person sales
    • Current new customers are acquired via word-of-mouth

Valuation Details

Funding Example

 

Purchase Price:

$1,100,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2-year average cash flow 2019 and 2022 projected, to reflect the end of the pandemic restrictions
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2-year average cash flow 2019 and 2022 projected, to reflect the end of the pandemic restrictions
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.