Return To Opportunities List

Opportunities

Absentee, Multi-Location Entertainment Business

Sold

Profit margin of 40% in 2021!

CASH FLOW
$458,879

Specifications

  • Price
    $1,525,000

  • Revenue
    $1,041,964

  • Cash Flow
    $458,879

  • Multiplier
    3.35

  • Location
    4 Locations – Lincoln, NE, Omaha, NE, Springfield, MO, Grand Rapids, MI

  • Employees
    1 Regional Manager, 1-2 Managers at each location + 3-5 PT Game Masters at each location

 

This absentee, multi-location entertainment business saw a profit margin of 40% in 2021!  With a regional manager to oversee day to day operations, and managers in place at each location, a new owner would be able to run this as a hands-off investment if desired!  The regional is aware of the sale and is willing to stay on board under new ownership to continue running the business.  On top of 1-2 managers on site, there are also 3-5 part time Game Masters per location who run the experience for customers and assist throughout the event.

 

The locations are spread across the Midwest, with one in Omaha, Nebraska, Lincoln, Nebraska, Springfield, Missouri, and Grand Rapids, Michigan.  Omaha was started in 2014, Lincoln & Springfield in 2015, followed by Grand Rapids in 2017, so each area is well-established, and the brand continues to make a name for itself regionally.  Each space is leased (details in the confidential package) and would be available for a new owner to continue renting onward going.

 

There are multiple options for the escape rooms at each location, from stopping a pandemic to solving a murder mystery.  This allows customers to come back time and time again for a new experience!  They have garnered a great customer base.  Between the 4 locations, they boast a following of over 30,000 email subscribers.

 

Priced at $1,525,000, a 15% down payment of $228,750 returns $239,362 in the first year after debt payments. This is not an opportunity to miss and is one that is guaranteed to have consistent and excellent services.

Highlights

Ø  2021 Revenue: 1,041,264

 

Ø  2019+2021 Cash Flow: 458,879

 

Ø  Year Established: 2014

 

Ø  Location: 4 locations – Lincoln, NE, Omaha, NE, Springfield, MO, Grand Rapids, MI

 

Ø  Number of Clients: Over 30,000 email subscribers across the 4 locations

 

Ø  Services: Corporate events, birthday parties, friends & family challenges, team building

 

Ø  Employees: 1 regional manager, 1-2 managers at each location + 3-5 part time Game Masters at each location

 

Ø  Reason for Selling: Divestment

 

Ø  Seller Training Period: 3-6 months

Financials

  • List Price: $1,525,000

 

 

  • 2019+ 2021 Cash Flow: $458,879

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
2021202020192018
GROSS SALES$1,041,964$662,798$1,324,909$1,559,298
Net Income Shown on Financial Statement$357,088$63,680$413,226$224,7142021 includes the adjustment for PPP
ADDBACKS
Compensation to Owners$0$0$17,500$0Owners not active in biz
Other Unrelated Salaries$0$0$49,547$323,701Salaries paid for work at separate biz
Tax on Owner/Unrelated Salaries$0$0$7,375$35,607
Depreciation$0$849$1,389$15,238
Interest$0$0$5,400$7,200
Cell Phones$0$0$8,000$14,000
Personal Expenses$58,233$0$0$0
TOTAL ADDBACKS$58,233$849$89,211$395,746
Seller's Cash Flow = Total Addbacks + Net Income$415,321$64,529$502,437$620,460
Profit Margin39.86 %9.74 %37.92 %39.79 %
  • Average profit margin of 40%

Valuation

Funding Example

Return To Opportunities List

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 makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.