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Opportunities

26% Profit on Corporate Rentals and High-End Floral

The owner of this business lives out of town and works 2-3 days per week!

CASH FLOW
$109,039

Specifications

  • Price
    $200,000

  • Revenue
    $414,804

  • Profit Margin
    26%

  • Cash Flow
    $109,039

  • Multiplier
    2.00

  • Location
    Omaha & Lincoln Area

  • Reason for Sale
    Family

  • Employees
    1 FT Lead Creative Consultant, 1 FT Warehouse Studio Manager, 4 PT employees

  • Intangible Assets
    Excellent reputation, quality social media presence & reviews, meticulous website, features on national wedding websites.

 

The owner of this business lives out of town and works 2-3 days per week! Serving Omaha and Lincoln for 20 years, this company focuses on high end weddings and corporate events with an average event sale range of $7,000-$8,000. This business has a unique ability to create and execute any request including lavish floral arrangements, draping, lighting, center pieces, and back drops. A full time lead creative consultant, warehouse studio manager, and a handful of part time employees ensure no detail is overlooked. A large workshop area, storage facility and a consultation office in a nearby city help this company maintain their excellent reputation. Recommendations from party planners, caterers, and former clients have allowed this company to flourish without active advertising. They have recently been nationally recognized in a TLC article. Over the years, a focus on floral has expanded to achieve an even split between floral, rentals, and design.

As seasonality effects all event design companies, the winter months would be a perfect time for a new owner to take this business to the next level. With additional employees & minimal advertising, this company is fit to grow. The owner is willing to train for up to three months.

At the current purchase price of $200,000, a 15% down payment of $30,000 returns $84,581 in the first year after debt payments, which is a return on investment of 282%.

 

Business Highlights

  • Revenue: $414,804
  • Cash Flow: $109,039
  • Year Established: 2010
  • Location: Lincoln, NE
  • Service Area: Omaha and Lincoln
  • Lease: 1 main warehouse, 1 storage facility, 1 consultation office
  • Clients: Wedding and corporate clientele
  • Services: Décor, draping, lighting, event rentals, center pieces, back drops and floral
  • Employees: 5: 1 FT Lead Creative Consultant, 1 FT Warehouse Studio Manager, 4 PT employees
  • Reason for Selling: Family
  • Seller Training Period: 3 months

The Team

  1. Employees

    This company has 6 highly experienced individuals on staff that take care of its operations:

    • 2 Full-Time Employees
      • A Creative Consultant
      • A Warehouse Studio Manager
    • 4 Part-Time Employees


  2.  Owner & Transition

    The owner lives out of town and therefore only works 2-3 days per week. The fully trained staff handles the day to day operations. The owner will stay on for 3 months to insure a smooth transition.

Services

  • Floral
  • Décor
  • Draping
  • Lighting
  • Event Rentals
  • Center Pieces
  • Back Drops

Financial Highlights

  • List Price: $200,000
  • Gross Sales:
    • 2019: $414,804
  • Cash Flow:
    • 2019: $109,039
  • Assets Included in Purchase*
    • Equipment: $34,000 in office supplies
    • Inventory: $24,000: Amounts fluctuate by season and event; large fully stocked storage facility with various rentals and props 
    • Intangible Assets: Excellent reputation, quality social media presence & reviews, meticulous website, features on national wedding websites.

*amounts may vary

Cash Flow Analysis

Description of Financial StatementTax Return
Cash Basis
Tax Return
Statement of Revenue
Notes
20192019
GROSS SALES$413,860$414,804
Net Income Shown on Financial Statement$32,189$31,841
ADDBACKS
Compensation to Owner$4,000$4,000
11% Tax on total W2 Salaries$440$440
Interest$10,027$10,027
Amortization$12,035$10,035
Meals & Entertainment$348$696
COGS$50,000$50,000Inventory Adjustment
TOTAL ADDBACKS$76,850$75,198
Seller's Cash Flow = Total Addbacks + Net Income$109,039$107,039
Profit Margin26.35 %25.80 %
  • Profit Margin: 26%

Typical Clients

  • High end wedding clients
  • Corporate clients

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

Differentiators

Industry Overview

Initially, the floral industry took a hit from COVID-19, but the floral industry is now producing more sales than before COVID-19 hit. According to Produce Marketing Association, floral is up 12% from early March.

Growth Opportunites

There are many ways that this company can continue to grow moving forward. Below, we have identified a couple of ideas to implement to see this growth.

Funding Example

Purchase Price:

$200,000

$
%
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.