Profitable Hardware Store with Large B to B Trade

Not Disclosed, MI
Kent County

West Michigan


Asking Price: Annual Revenue:
$722,000 $800,000

Retail: Hardware, Bldg. Materials, Garden Center


Request More Information
Contact the Seller

RE: Profitable Hardware Store with Large B to B Trade Broker: Mike Greengard

Quick Facts

Asking Price: $722,000
Annual Revenue: $800,000
Net Profit: Not Disclosed
Cash Flow: $200,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1989
Employees: 6
BBN Listing #: 908631216
Broker Reference #: MG1091322

Email or Print Listing

Request More Information
Contact the Seller


Business Overview:

We are pleased to offer a successful, well-established (i.e. in continuous operation “forever”) West Michigan hardware store. This iconic business leases a late model 6,000 square foot facility (plus a 6,000 square foot basement) on a 1/2 acre plot. Rent (to a third party) is a favorable 7.0% of revenues. The facility is located at the intersection of busy city streets providing both easy access and high visibility. Major highways are just minutes away, and there is ample dedicated parking at the store’s main entrance.

Included in the price of the business is $334,000 of inventory encompassing every conceivable SKU of branded hardware items including tools, supplies, fasteners, etc. In addition, the business has several repair centers (windows, screens, pipe threading, keys, power tool repair, ratchet kit rebuild, blade & chain sharpening, etc.) to take care of all its customers’ (commercial and individuals) needs.

This long-time business has been in the seller’s hands for the past 33 years. Unlike most hardware stores, this business has developed a strong relationship with a loyal, local clientele of commercial customers including builders and manufacturing entities. This “b to b” component complements the walk-in traffic from individuals and homeowners. With the store not offering either evening or Sunday hours, the business is able to operate with a loyal, experienced staff of just three full-time and three part-time employees The owner looks forward to selling his very successful store and retiring after giving the buyer ample transition training.

Now the numbers: the business generated the past four years, average annual gross sales exceeding $800,000 while recording average, annual SDE (seller’s discretionary income - the normalized, historical cash flow available to pay a buyer and service debt) of nearly $200,000. The business is being offered for $722,000 which is a combination of:

• 2.0x SDE which is 2.0 x $194,000 = $388,000
• Inventory at cost = $334,000
• $400,000 + $334,000 = $722,000 list price for the business

The seller envisions a cash-free, debt-free asset sale in which he retains the cash and nominal A/R (from business accounts) while retiring all liabilities. The seller will match a buyer’s $90,000 (12.5%) down stroke with a $90,000 seller note, leaving $542,000 required from an SBA term loan. In this scenario, the buyer can expect estimated annual debt service (SBA loan + seller note) approximating $83,000, leaving the buyer on average more than $100,000 of annual post debt service discretionary cash flow.

For more information on this excellent business opportunity, please contact Mike Greengard.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Property Features and Assets:

A late model 6,000 square foot facility (plus a 6,000 square foot basement) on a 1/2 acre plot, and there is ample dedicated parking at the store’s main entrance.

Reason for Selling:

Retirement

Additional Details:

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

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!