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Upscale Bridal Boutique

Passive owner with 8 well-trained employees including stylists, coordinators, and assistants!

CASH FLOW
$154,202

Specifications

  • Price
    $430,000

  • Revenue
    $984,756

  • Reason for Sale
    Non-competing new ventures

  • Location
    Southern Connecticut

  • Service Area
    Regional

  • Equipment
    75,000: Furniture, fixtures, equipment, software

  • Intangible Assets
    Excellent social media reviews, positive reputation, great atmosphere, unique offerings, refined style

  • Lease
    2,500 sq. ft.: Boutique with fitting rooms, storage, kitchenette

  • Employees
    8: Store manager, lead stylist, 2 stylists, 2 coordinators, 2 sales assistants

 

This business has a passive owner and 8 well-trained employees including stylists, coordinators, and assistants! The highly qualified team creates a memorable shopping experience for brides at this Connecticut boutique. The selection of designer offerings includes wedding gowns (72%), bridesmaid dresses (6%), as well as veils (4%), shoes and accessories (8%).  Additional ancillary services are offered to create a truly full-service experience.  This boutique is very well regarded in the region, with brides coming from the surrounding areas such as New York and Massachusetts.  Social media reviews are exceptional and engagement on multiple platforms has been endearing for brides and impactful on revenues.    All orders are paid up front, reducing the need to bill customers and reducing financial risk.  The owner drives the vision and experience at the store and oversees the marketing and financial tasks.  This is a part-time focus and the role could be replaced by an on-site or off-site owner. Included in the purchase is $375,000 worth of assets!

One great feature of the company is the effective sales team.  The boutique is overseen by a store manager who expertly tends the day-to-day operations while stylists help customers select the gown of their dreams.  The full-service shop allows for luxurious privacy in selecting and fitting gowns in addition to storage and workspaces.  The 2,500 square feet is a dreamscape, exquisitely furnished featuring large fitting rooms and plenty of space for friends and family.  Though earning over $1,000,000 annually for the past ten years, further growth can be found in expanding dresses for women with curves and seeking inventive methods for liquidating inventory.

 

Business Highlights

  • Year Established: 2004
  • Location:  Middlesex County, Connecticut
  • Service Area:  Regional
  • Merchandise: Wedding gowns, bridesmaid dresses, veils, shoes, accessories
  • Clients: Upscale brides and maids looking for a refined style aesthetic and a memorable experience 
  • Lease: 2,500 sq. ft.: Boutique with fitting rooms, storage, kitchenette
  • Reason for Selling: Non-competing new ventures
  • Employees: 8: Store Manager, lead stylist, 2 stylists, 2 coordinators, 2 sales assistants 
  • Seller Training Period: 6 months
  • Growth Opportunities: Expand curvy options, explore new ways to liquidate inventory
  • Current Owners’ Responsibilities: Oversight of marketing and financials - part-time hours only 

Financial Highlights

  • List Price: $430,000
  • Gross Sales:
    • 2019: 984,756
  • Cash Flow:
    • 2019: $154,202
  • Assets Included in Purchase*
    • Equipment: $75,000: Furniture, fixtures, equipment, software
    • Inventory: $300,000: Wedding gowns, bridesmaids gowns, shoes, accessories
    • Intangible Assets: Excellent social media reviews, positive reputation, great atmosphere, unique offerings, refined style

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnNotes
20192018
GROSS SALES$984,756$1,091,634
Net Income Shown on Financial Statement$112,870$90,850
ADDBACKS
Depreciation$0$11,128
Interest$21,202$20,178
Auto-Personal Use$2,871$2,375Personal
Cell Phone$2,000$2,000Personal
Legal Costs$0$17,957One-time cost for new website and transition to Office 365
Gifts$875$963
Rent$2,400$0Overpaid rent to self
Donation$1,743$40,616
Life Coach$8,519$0
Travel$1,722$0
Income from Other Business$0$-46,601Income Minus Expense = Net - used for this line item
TOTAL ADDBACKS$41,332$48,616
Seller's Cash Flow = Total Addbacks + Net Income$154,202$139,466
Profit Margin15.66 %12.78 %

Merchandise

Wedding attire for upscale brides and maids looking for a refined style aesthetic and a memorable shopping experience.

  • Wedding gowns
  • Bridesmaids gowns
  • Veils
  • Shoes
  • Accessories

Employees

Total Employees: 8

  • Store manager
  • Lead stylist
  • 2 Stylists
  • 2 Coordinators
  • 2 Sales assistants

Growth Opportunities

  • Expand curvy options
  • Explore new ways to liquidate inventory

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 multiple is prescribed 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 multiple.

For this business, the 2019 cash flow was used with a prescribed multiple of 2.8.  With this information, the computation is as follows:

$154,202         x          2.8       =          $431,766

The fair market value found above positions the business list price at $430,000.

Funding Example

Purchase Price:                             $430,000

10%Buyer Down Payment:        $43,000

10%Seller Financing:                  $43,000

80%Bank Loan:                         $344,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $802.

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $4,521.

After business expenses and loan payments, a buyer with a 10% down payment of $43,00 would retain a profit of $90,334, which results in a 210% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $430,000 with the terms listed above, the coverage ratio is 2.41. 

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:

$430,000

$
%
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:
2019 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2019 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: %

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

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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.