Established, Profitable, Value Priced Hardware

Not Disclosed, MI
Wayne County

Southeast Michigan-Wayne County

Asking Price: Annual Revenue:
$632,000 $800,000

Retail: Hardware, Bldg. Materials, Garden Center

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RE: Established, Profitable, Value Priced Hardware Broker: Mike Greengard

Quick Facts

Asking Price: $632,000
Annual Revenue: $800,000
Net Profit: Not Disclosed
Cash Flow: $170,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1970
Employees: 6
BBN Listing #: 988831216
Broker Reference #: MG1092121

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Business Overview:

It has been a great 10 year run for the owner-operator of this venerable, profitable hardware store which offers product combinations not seen elsewhere in Michigan. Established over 50 years ago this store is a fixture in its desirable Southeast Michigan community offering both standard hardware fares while having two surprising additional profit centers.

Located in an 8,000 square foot building, the business uses nearly 6,000 square feet of floor space for retail sales with the remainder used for storage. The real estate (owned by the seller) includes an ample, adjacent parking lot and store entrances in front and back. The seller plans to lease the real estate and building to the new owner for a favorable lease of less than 4.0 % of revenues. The real estate may also be purchased in a separate transaction for the current market rate of approximately $330,000.

Over the past four year period, the business has had average annual sales of $720,000 with an annualized run rate of $800,000 over the past 20 months. Over the same 20 month period, the business has had an impressive annualized SDE of $170,000. (SDE = seller’s discretionary earnings: the historical, normalized cash flow available to pay the owner-operator and service debt.)

The business comes with $500,000 (cost basis) of inventory on which the seller plans to offer the buyer a very friendly 50% inventory adjustment (through discounts and consignment) of $250,000 (to a final inventory value of $250,000). The $250,000 of inventory plus an attractive 2.25x multiple of SDE results in a value price of $632,000 for the business (2.25 x $170,000 = $382,000 + $250,000 (inventory) = $632,000.

The Seller, who plans to carry a $100,000 seller note for a qualified buyer, will give the buyer extensive transition training before he relocates out-of-state to care for family members. The business boasts a long-time, very capable general manager who looks forward to staying aboard for the new owner-operator. The GM is assisted by a total of six full and part-time employees.

Approximately 60% of revenues are generated by the store’s hardware side. The business is affiliated with a desirable, well-known, highly reputable national buying group which offers its members a generous annual rebate program. The remaining 40% of revenues come from the two unrelated (to hardware) profit centers.

The seller envisions an asset sale in which he retains the cash and the minimal accounts receivable while retiring all liabilities. For more information on this well-established successful business, please contact Mike Greengard.

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Property Features and Assets:

8,000 square foot building with an adjacent parking lot.

Reason for Selling:


Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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