New Listing: Independent Furniture Retail in Southeast South Dakota

Jul 22, 2022 8:28 pm

I've got something special this week! It's been a little while since I've sent an email. Consider it a product of the hectic Midwest summers where we try to pack a year's worth of fun into three months.

This week I'm coming to you with a business listing that isn't even listed it! It should go live by the end of the weekend, so, for now, you're the first to know--well, you and the other 9,000 or so people who get my almost weekly emails.

Speaking of, if you know someone that would benefit from these once-in-a-while messages, send them over to my signup page. And rest assured that even if I knew how to sell your contact information it will never leave my hands.

More Information, Please!

B2B Metal Manufacturing & Fabrication

Cash Flow:$ 179,967

Gross Revenue:$1,196,792

FF&E:$ 100,000 (Included)

Inventory:$ 300,000 (Included)

Real Estate:$1,100,000 (Available)

Established:1928

Employees:3

Reason for Sale

Owners have found a new passion to pursue.

Business Overview

This furniture store has been a staple in the community for decades. There are both long-time, loyal customers and new younger customers that appreciate the new, more modern look of the store. The store has nice, newer inventory. The store retails furniture, appliances, and flooring.

Offers design and consultation services for bedroom, living room, dining room and office areas. The store offers delivery and installation of their products.

Facilities

The facility has a total of 12,000 square feet of space, which includes 8,400 square feet of showroom with a small office and 3,600 square feet of warehouse space with a mezzanine on both sides for additional storage upstairs. A very large lot has plenty of room for expansion.

There are a couple options available to a buyer for the real estate. In addition to a typical lease, half of the 4+ acre lot could be sold, or a buyer could purchase the entire property for expansion or investment. There is a current tenant on the premises.

There is paved customer parking and a large gravel lot for deliveries, truck turnaround, and staging.

Products, Services, Licenses, Skills Required

A minimal amount of mechanical aptitude is helpful for appliance installation. There is currently no appliance service or repair being offered. This could be a good opportunity for an absentee or semi-absentee owner. Some of the current owners' duties could be outsourced and the rest could be handled by a part-time employee.

Competition/Industry

Geographically, the location serves many small towns. There is no direct competition within 35 miles. Expanded hours and a modernized store have resulted in fewer of the competitor's delivery trucks in the area.

Sales & Marketing

Current marketing efforts include newspaper, social media, and billboard. The store is marketed heavily to the more mature buyer, but many new, young customers are walking in the door due to digital advertising. A lot of thought has gone into the design of the store to make both customer segments feel comfortable with marketing targeting the middle 80% of customers, The store offers a much wider selection nowadays, there are few extremely cheap, wildly expensive, or ultra-trendy offerings.

Assets

All assets are in good, working order. A buyer could have a couple of different options on how to structure the transaction. The current asset mix is based on many decades of experience in the industry and work very well with the needs of the store and the way it is currently operated.

Potential for Growth

Adding appliance repair would be a fast way to grow the store's annual revenues. A mechanically skilled employee could install and service appliances and upsell other products while in the home. Window coverings could be added to the product selection. Working with more construction contractors and/or multi-unit housing owners would open doors to additional flooring and appliance sales. New construction flooring and appliance customers regularly come back for furniture once the home is completed. There are currently two bulk appliance and furniture clients with certain furniture lines for these customers. There is potential for more of these types of relationships.

The store has the potential to be a destination location to draw additional customers from larger cities and hour or even more away. Customers rave about the personal shopping experience they get in a small-town store. More locations could be added under the same brand.

More Information, Please!

As always, I'm looking forward to hearing from you soon!

Happy Friday,

Josh

JOSH GRODE WOLTERS, MA, MBA, BTS

Business Broker | M&A Advisor

· $23M closed transactions ·