Store Fixtures & Installation
Everything that goes inside your new store from the front door to the loading dock!
Everything that goes inside your new store from the front door to the loading dock! 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 16-24 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.
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.
- Year Established: 15+ years
- Location: Richmond, Virginia; regional offices in New Jersey & Florida
- Service Area: Primarily the East Coast
- Services: Retail store fixture, cash register, & shelving installation, interior signage installation
- Clients: All commercial: retail establishments, warehouses, pharmacies
- Lease: Office and warehouse lease
- Reason for Selling: Retirement
- Personnel: 16-24 employees (all W-2); 1 owner, 3 area managers, crew leads, crew workers
- Seller Training Period: 6 months
- Growth Opportunities: Increase marketing, hire direct sales staff, offer residential work
- Current Owner’s Responsibilities: Oversight, invoicing, no labor
- 2020: $3,662,972 annualized
- 2019: $2,312,007
- 2018: $1,805,102
- 2017: $1,607,585
- 2019: $226,925
- Equipment: Tools, chop saws, table saws, computers
- Vehicles: $49,671 Toyota and Highlander
- A/R: $35,830
- Intangible Assets: Established Reputation, Easily Relocated, Spread-out Staff
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$184,315||$11,163||$3,907||$1,075||2020 is an average|
|Compensation to Owner||$56,611||$227,000||$123,500||$159,000|
|11% on Owner Salary||$6,227||$24,970||$13,585||$17,490|
|Auto Expense||$400||$1,200||$1,200||$1,200||Personal expense|
|Travel Expense||$3,500||$14,000||$14,000||$14,000||Personal expense|
|Seller's Cash Flow = Total Addbacks + Net Income||$239,377||$226,925||$109,307||$136,650|
|Profit Margin||26.14 %||9.82 %||6.05 %||8.50 %|
- Big Retailers
- Small Retail Establishments
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- 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
- 1 Owner
- 3 Area Managers
- Crew Leads
- Increase marketing efforts
- Hire direct sales staff
- Offer residential work
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 2019 cash flow was used with a prescribed multiple of 3.35. With this information, the computation is as follows:
$226,925 x 3.35 = $760,199
The fair market value found above positions the business list price at $765,000.
Purchase Price: $765,000
10%Buyer Down Payment: $76,500
10%Seller Financing: $76,500
80%Bank Loan: $612,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,426.
Bank loan 10-year term at a rate of 6% equals a monthly loan payment of $6,794.
After business expenses and loan payments, a buyer with a 10% down payment of $76,500 would retain a profit of $128,277, which results in a 167% 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 $765,000 with the terms listed above, the coverage ratio is 2.30.
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.
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: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2019 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2019 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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Omaha, NE 68114
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