Business Opportunity Sale

4603 N. Brawley Ave. #101, Fresno, ca 93722

Offered at $220,000

Property Snapshot:

               Gross Revenue:$657,000                                                       EBITDA:N/A

               FF&E:$80,000                                                                         Inventory:$997,000

               Lease Rate/Sq. Ft.:N/A                                                          Established:1992

 

Business Description

Established in 1992, this business is a full service interior design firm catering to business clients. Fully turn-key, profitable, and being listed for ONLY 1X NET EARNINGS. This business has been in operation for over 25 years under the same owner and has enjoyed a reputation for providing a high level of quality service to its customers. It has built up a tremendous amount of goodwill in the community while achieving consistently growing sales in the process. 

Current owner is semi-absentee and comes in on a limited basis to handle payroll and bookkeeping. The majority of day to day management tasks are handled by the operations manager. This is primarily a Monday-Friday business, so weekends are generally free for the owner. It’s a very straight forward, manageable business model and no specific industry experience is required. Current owner will happily stay on for a period of time to provide sufficient training and support to ensure a smooth transition.

Revenue sources include: commercial space planning & interior design services for clients, CAD design (computer-aided design), project management, delivery & installation, sales of new and fully refurbished office furnishings to clients/brokers/dealers, part sales, and parking lot sales.
The company sells a variety of brands and products, but specializes specifically in custom refurbished Herman Miller products (Herman Miller is a publicly traded, multi-billion dollar company, and is the premier brand in the office furnishings space). All of the products are refurbished in-house to like-new condition, and are then sold to clients who receive a top-quality product at a substantial savings (70-80%). This is a fully environmentally friendly and green process, as these products would have otherwise been disposed of in a landfill.

Very strong repeat and referral client network in place that has been built up over two plus decades. A strong emphasis on customer service has made this a purely word of mouth business, with a constant flow of ongoing business through the door from devoted clientele. 

The employees are all highly experienced and handle every aspects of the remanufacturing, installation, and interior design process from beginning to end. The warehouse manager has been with the company for 15 years, the office manager for 8 years, and the 3 other employees for 5+ years. Very consistent workforce and low personnel turnover. The employees are fully aware of the sale and will happily stay on under the new owner for a seamless transition.

2016 experienced $657k in gross revenue with $217k in net profit and still continuously growing even in it's 25th year of operation. Overall sales have increased year over year each of the last 3 years and net profits nearly doubled from 2015 to 2016. Very healthy margins on both the gross and net basis. It’s an extremely lean and efficiently run operation in all aspects. 0 debt or lease obligations of any kind; everything is owned outright and paid off. Immaculate bookkeeping and financial records have been maintained over the life of the business. All stated figures are fully verifiable and any financial documents will be provided upon request.

All of the furnitures, fixtures, equipment, and current inventory is included in the asking price. OVER $1M IN VALUE. This business is truly listed for well below the book value of its assets.

 

Detailed Information

Inventory:

Included in asking price

Real Estate:

Leased

Building SF:

27,000

Lease Expiration:

12/31/2018

Employees:

5

Furniture, Fixtures, & Equipment (FF&E):

Included in asking price

Facilities:

On-site warehouse and office facilities are 27,000 square feet of total space. Current owner has taken huge pride in ownership by keeping the space extremely clean and well maintained.

Competition:

2-3 other firms in the marketplace that offer commercial interior design services and sell new office furnishings, but none that fully refurbish previously owned items and sell them at a deep discount to clients. Truly a unique business with minimal direct competition.

Growth & Expansion:

Tremendous upside potential for a new owner to drastically increase revenues: 1) Company currently does not have a website, ebay store, amazon store, or any kind of digital/ecommerce presence for that matter. Creating a presence on these platforms would substantially increase sales. 2) Carrying additional brands and products. Currently this company specializes in mainly Herman Miller products, but the infrastructure is in place for the same process to be used for additional premier office furnishing brands such as Steelcase, Knoll, Hon, Haworth, etc. 3) The business is fully scalable and expansion into other untapped markets such as Los Angeles or the Bay Area could provide huge growth opportunities. 4) Expand the dealer and broker network. Actively reach out to additional dealers and brokers and form business relationships to have them sell products in the company's inventory. 5) Company currently does no marketing, and all of the business comes strictly on a repeat and referral basis. Huge opportunity to drive awareness and sales through marketing efforts directed at an expanded client audience.

Financing:

None

Support & Training:

4 weeks

Reason for Selling:

Retirement