Furniture Retailer - Click For Details

Listing ID


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Nova Scotia


Furniture, Appliance, and Bedding.....the daily necessities of every household. Bucking the trends of internet retailing, it is evident large consumer items require the see, feel, touch experience and are holding their ground against the internet.

This acquisition is best suited for someone with previous business experience and has sufficient financial resources to capitalize on the business being lost on a daily basis as a result of the under capitalization situation currently existing in the operations. Sufficient data has been obtained that would provide support to believe there could be an additional $1M or more in revenues generated and would then translate in to an additional $300,000 profit each year.

When compared to similar stores with similar markets, there are a number of key performance indicators these locations fall short on, which results in the overall financial performance falling in the lower quartile. There is recognizable growth potential, given changes in competitive landscape with closing of key competitor.

Financial Information

The business has been generating average revenues of $8.25M per annum and gross profit of 40% over the last 3 years. 2018 guidance is on track and 2019 is expected to see $9.2M and normalized EBITDA approximately $625k, given recent changes in available working capital.

** Note: the above EBITDA projections is based off of a rental rate of $338k per annum for one of the buildings. If purchased, and mortgage payments are $240k or less per annum, there would be an additional $100k in cash flow. Also considers full usage of $1.5M Line of Credit at 6% interest.

The minimum amount of equity investment required by a buyer should be $1.5M. This would consider just the business operations, not the acquisition of the real estate. Expect not less than an additional $1M should the real estate be considered.

Real Estate

The business operates from 2 locations, one of which is owned.

1. The owned location was built in 2011 and is comprised of 31,708 sft (showroom, office, and warehousing), situated on 3.76 acres, with full services to the property. A current appraisal (Feb/18) indicates FMV of $4.3M. 70% or better financing should be expected, as such, a new $3M mortgage at 5% over 20 years would require payments of approximately $19,715 per month.

2. The leased location has 30,000 square feet, whereby the first 10 year term commenced August 2014. The lease is "semi-gross" and is $12.58/sqft, with a $1.00 increase occurring for the last 4 years of the lease in September 2021. 2017 total premises costs (Rent + Taxes) were $345,000. The owners are in negotiations to overhaul the entire lease.


Accepting Offers

Non Disclosure Agreement

I hereby acknowledge that information regarding the following business(es) and/or Seller(s) is being provided to me in SECRECY AND CONFIDENCE and is to be used solely for the purpose of assessing the prospective purchase of the business(es) through Gateway Business Brokers.

I agree not to disclose any of the information given in connection herewith, either directly or indirectly, to third parties, except direct support people; nor will I use, or assist others to use, any such information for competitive trade purposes or to circumvent Gateway Business Brokers in any transaction or contact with the seller(s). I agree not to make copies of any of the material provided and to return all of it if I discontinue interest in the Business. The material and information furnished is believed to be reliable for the purpose of evaluating the Business. Further, I agree that all inquiries, investigations, negotiations, offers to purchase, and/or letters of intent must be made through Gateway Business Brokers. I agree to protect and not disclose the confidentiality of the information I receive permanently, even if I choose not to purchase the said business.

I agree that any breach of this Non-Disclosure Agreement (the "Agreement"), directly or indirectly, will be harmful to the Seller(s) and Gateway Business Brokers. In consideration for the information given, I agree that the laws of Nova Scotia will govern this Agreement and that all actions that may arise in law and/or equity shall be brought in Nova Scotia.

It is understood that this Agreement also applies to any information previously supplied by Gateway Business Brokers, verbally or in writing. I understand that neither the Seller(s), the Business(es), its officers, directors, employees, nor Gateway Business Brokers ,shall have any liability as a result of furnishing me the material included in this Agreement.

This agreement also acknowledges that the undersigned Buyer(s) has (have) been advised that Gateway Business Brokers provides Client representation for the seller(s) and Customer representation for the buyer(s) in this transaction, as per the terms that have or will be provided. I agree that should I buy, lease or come into possession of the Business, in whole or part, during the listing term or within 1 year from the expiry date of the listing term, Gateway Business Brokers’ right to a fee, as per Gateway Business Brokers’ agreement with the Seller(s), will be deemed earned. I understand I will be personally liable for payment of any applicable fees, as so reasonably determined, if I breach any clause of this agreement. It is agreed, however, that if a purchase is completed with the assistance available from Gateway Business Brokers, I am not liable for a fee.

Non-Disclosure Agreement