Opportunities
Gun Retail and Restoration Location- 20% PM
Passively owned and $1.2M inventory included!
Specifications
The purchase of this passively owned firearm store includes $1.2M of inventory guaranteed by current ownership! While many retail stores were hit hard by covid restrictions in recent years, this location has not only survived but thrived after doubling in cash flow and increasing their profit margin to 20%! Current staff consists of 1 part-time and 5 full-time workers including a general manager who fully handles business operations. Located in Pennsylvania, the current local customer base is very diverse including local law enforcement agencies, first responders, military personnel, hunters, recreational shooters, and individuals seeking home protection. Thankfully, the store has a wide variety of available products to meet these demands including ammunition, scopes, sites, holsters, safes, and new and used rifles, handguns, and shotguns. In addition to these inventory availabilities, they offer such services as gun trading, gunsmithing and cleaning, off-season storage preparation, scope installation, night sight installation, total tear down and reassembly, and function checks. With the aforementioned inventory and services, an outstanding reputation built on customer services, and their established and knowledgeable staff this business is primed for a new owner to step in and enjoy the spoils of an annual cash flow over $1M.
The revenue, both online and in store, is generally split evenly between the sale of firearms and accessories. With an established customer base they sell approximately 3,000 firearms per year, with 1,000 of those sold to repeat customers. They work out of a 3,000 sq. ft. space and the current rent is $2,600/month, with 4 years left on the lease. They have 700 firearms in stock, valued at $1.2M which offers a bank loan that would be 60% collatorized.
Priced at $3,800,000, this business is in a prime geographic location, has a solid online sales representation, has a solid reputation and client base already in place, and is poised for continued growth. A new owner could offer more online products by working with more distributors; the company currently works with three distributors but has memberships with 12. Opening the store on Sundays would also lead to a boost in sales.
Business Highlights
Year Established: 2014
Location: Harrisburg, Pennsylvania
Service Area: Primarily locally based clientele
Products: Wide variety of new and used firearms for sports, protection, and recreational use, plus ammunition, scopes, sites, holsters, safes, etc.
Services: Gun trading, gunsmithing & cleaning to prepare firearms for off-season storage, scope installation, night sight installation, total tear down, cleaning, reassembly, and function checks of firearms
Customers: Local law enforcement agencies, first responders, military personnel, hunters, recreational shooters, people wanting to protect their home
Business Hours: Mon-Sat: 10am-6pm; Closed on Sundays
Lease: 3k sq. ft. building; $2,600/month
Reason for Selling: Approaching retirement
Personnel: 5 FT & 1 PT; all employees capable of running the day-to-day operations of the store
Seller Training Period: 3-6 months
Growth Opportunities: Work with more distributors (the business currently has memberships with 12 distributors, but only works with 3) – working with more would allow for more online sales
Current Owners’ Responsibilities: Owner 1: General Oversight; Owner 2: Managing Member (willing to stay on as an employee)
Employees
- 5 FT Employees
- 1 PT Employee
All 6 employees are extremely knowledgeable about each gun in stock at the store and are capable of all armoring services and point-of-sale. They are all certified instructors as well and can teach customers about safety features and how to shoot the firearm (with no ammunition).
Financial Highlights
- List Price: $2,800,000
- 2021 Annualized Cash Flow: $937,393
- 2020-2021 Average Cash Flow: $711.730
*amounts may vary
Assets
- Inventory: Currently 700 firearms in stock, valued at approximately $1.2M
- Intangible: Excellent location, large number of repeat customers, well-known for customer service
Cash Flow Analysis
| Description of Financial Statement | Tax Return Accrual | Tax Return Accrual | Tax Return Accrual | Tax Return Accrual | Notes |
| 2021 | 2020 | 2019 | 2018 | ||
| GROSS SALES | $5,028,881 | $5,818,647 | $3,693,314 | $3,458,554 | |
| Net Income Shown on Financial Statement | $250,133 | $226,465 | $151,762 | $82,766 | |
| ADDBACKS | |||||
| Compensation to Owner | $280,000 | $150,000 | $150,000 | $0 | Does not need replaced |
| Owner's Child | $462,000 | $150,000 | $150,000 | $0 | Acts as Store Manager: Would stay on board |
| 11% Tax on total W2 Salaries | $81,620 | $33,000 | $33,000 | $0 | |
| Depreciation | $34,191 | $673 | $1,897 | $3,133 | |
| Auto Expense | $241 | $3,494 | $6,084 | $6,647 | Personal Expense |
| Dues | $1,800 | $1,800 | $1,800 | $0 | $150/month |
| Health Insurance | $4,800 | $4,800 | $4,800 | $4,800 | $400/month |
| Meals | $110 | $835 | $256 | $68 | |
| Travel | $0 | $0 | $5,744 | $971 | |
| Amortization | $0 | $0 | $0 | $500 | |
| Contributions/Donations | $0 | $0 | $0 | $0 | |
| Replacement | $-85,000 | $-85,000 | $-85,000 | $-85,000 | To replace/retain owner's son as store manager |
| TOTAL ADDBACKS | $779,762 | $259,602 | $268,581 | $-68,881 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $1,029,895 | $486,067 | $420,343 | $13,885 | |
| Profit Margin | 20.48 % | 8.35 % | 11.38 % | 0.40 % |
- There was a definite boost in sales in 2020, largely due to the pandemic. As more people were working from home and looking to start/continue an outdoor hobby, gun sales surged. The seller stated that most people who buy their first gun come back for more, and most existing customers are not “one-gun” clients. They have customers who buy/trade on a weekly basis.
Valuation
Funding Example
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857