Return To Opportunities List

Opportunities

Fixture Installations for Pharmacies, Clinics, & Retail Stores

Year-over-year growth since 2017!

CASH FLOW
$500,754

Specifications

  • Price
    $790,000

  • Revenue
    $3,011,745

  • Cash Flow
    $500,754

  • Down Payment
    10%

  • Location
    Richmond, Virginia; regional offices in New Jersey & Florida

  • Service Area
    Primarily the East Coast

  • Reason for Sale
    Retirement

  • Employees
    20 (all W-2); 1 Owner, 1 Director, 3 Area Managers, 15 Installers

  • Intangible Assets
    Well-established reputation, word-of-mouth referrals

With 100% commercial clients, this fixture installation business has seen year-over-year growth since 2017! Established for more than 15 years, this business specializes in building and installing fixtures and interior signage for commercial clients. Their highly skilled and experienced team of 20 employees, including managers, crew leads, and crew workers, is known for completing projects in a professional and efficient manner. Each area manager has their own specialty, but they are all cross-trained. Clients provide blueprints and materials; no inventory is needed on hand. Included in this purchase is $85K worth of assets including tools such as chop saws, table saws, and other equipment. Clients include big & small retailers, as well as pharmacies, clinics, pet hospitals, and warehouses.

 

Primarily serving the East Coast states, this business provides retail store fixture installation, pharmacy fixture installation, customizations and modifications during the installation process, and quality inventory management to ensure their clients get the results they want. They also provide store remodeling, closing and relocation services.

 

The current owner handles general oversight, sales, and invoicing. Increasing marketing efforts or hiring a direct sales staff would provide growth for the business, as well as offering external signage, lighting work, or residential work. Priced at $790,000, this company has substantial growth opportunities. A 10% down payment of $79,000 returns $261,968 in the first year after debt payments – a 332% return on investment!

Business Highlights

Year Established: 15+ years

Location: Richmond, Virginia; regional offices in New Jersey & Florida

Service Area: Primarily the East Coast

Services:Fixtures and installation, custom millwork, glass showcases, electronic display walls, steel fixtures and gondolas

Clients:All commercial: retail establishments, warehouses, pharmacies, clinics, pet hospitals

Lease:Office and warehouse lease

Reason for Selling:Retirement

Personnel:20 (all W-2); 1 Owner, 1 Director, 3 Area Managers, 15 Installers

Seller Training Period:6 months

Growth Opportunities:Increase marketing, hire direct sales staff, offer residential work

Current Owner’s Responsibilities:Oversight, invoicing, no labor

Financial Highlights

 

 

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Oct 13, 2020 - Accrual
Tax Return
Accrual
Tax Return
Accrual
Tax Return
Accrual
Notes
2020201920182017
GROSS SALES$2,432,563$2,312,007$1,805,502$1,607,585
Annualized$3,011,745
Net Income Shown on Financial Statement$267,715$11,163$3,907$1,075
ADDBACKS
Compensation to Owner$142,000$227,000$123,500$159,000
11% on Owner Salary$15,620$24,970$13,585$17,490
Interest$10,334$15,592$20,115$10,885
Auto Expense$946$1,200$1,200$1,200Personal expense
Travel Expense$11,038$14,000$14,000$14,000Personal expense
Miscellaneous$2,365$3,000$3,000$3,000Personal expense
Replacement$-55,192$-70,000$-70,000$-70,000
TOTAL ADDBACKS$127,111$215,762$105,400$135,575
Seller's Cash Flow = Total Addbacks + Net Income$394,826$226,925$109,307$136,650
Annualized
Profit Margin16.23 %9.82 %6.05 %8.50 %
.

Clients

  • Big Retailers
  • Offices
  • Small Retail Establishments
  • Kiosks

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

Services

  • Closings and Relocations
  • Custom Millworks
  • Mall Kiosks
  • Multi-store Rollouts
  • Retail Fixture Displays
  • Sign and Graphic Displays
  • Store Fixture Installation
  • Store Remodels
  • Wholesale Fixture Displays

Personnel

  • 1 Owner
  • 3 Area Managers
  • Crew Leads
  • Crew

Growth Opportunities

  • Increase marketing efforts
  • Hire direct sales staff
  • Offer residential work

Valuation Details

The Firm used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A prescribed multiple is determined by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiplier.

For this business, the 2-year average cash flow was used with a prescribed multiple of 2.2.  With this information, the computation is as follows:

$363,840         x          2.2     =          $800,448

The fair market value found above positions the business list price at $790,000.

Funding Example

Purchase Price:                             $790,000

    10% Buyer Down Payment:          $79,000

    10% Seller Financing:                   $79,000

     80% Bank Loan:                         $632,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,473.

Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $7,016.

After business expenses and loan payments, a buyer with a 10% down payment of $79,000 would retain a profit of $261,968, which results in a 332% return on investment in the first year.

A lender is required to have a minimum 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $790,000 with the terms listed above, the coverage ratio is 3.57. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.

Purchase Price:

$790,000

$
%
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
$
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
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

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

Down Payment: $
NOI:
ROI: %

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard


The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.