Cash Cow Business - Two Tobacco/Glass/CBD Stores

Not Disclosed, MI

West Michigan


Asking Price: Annual Revenue:
$725,000 $1,100,000

Retail: Non-classifiable


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RE: Cash Cow Business - Two Tobacco/Glass/CBD Stores Broker: Mike Greengard

Quick Facts

Asking Price: $725,000
Annual Revenue: $1,100,000
Net Profit: Not Disclosed
Cash Flow: $275,000
Total Debt: Not Disclosed
FF&E: $100,000
Real Estate: Not Disclosed
Year Established: 2004
Employees: 7
BBN Listing #: 431231216
Broker Reference #: MG1010320

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Business Overview:

If a West Michigan retailer (specializing in make your own cigarettes, cigars, CBD products, glass, accessories and the like) with two, well-located stores in desirable communities with minimal rent, sane hours, and a SDE (seller’s discretionary earnings – the historic cash flow available for a buyer’s salary and to service debt) of $275,000 annually sounds appealing, read on as this could be the business opportunity for you.

Year after year the two stores have combined annual sales exceeding $1,000,000 and have averaged $1,100,000 annually over the past four years with annual revenue increases each year. And this with stores that are only open 59 hours per week (10-7 daily; and 12-5 Sundays). A modest expansion of the stores’ hours would seem to present an easy opportunity for increased sales.

With combined annual rent of only $45,000 (just 4% of revenues), this business is poised to continue its excellent financial performance aided by a loyal customer base…one need only spend a few minutes in the stores to pick up the positive vibrations.

After nine successful years (and a fully retired SBA loan), the owner of these businesses (which have been in continuous operation since 2004) has his eye on some non-competitive opportunities which will require him to transition the stores to a new owner. The businesses boast a well-compensated, loyal, full-time general manager who leads a staff of three full-time and three part-time employees which includes full-time assistant managers at each location. The strong team allows the owner to average just 25 hour work weeks.

Let’s talk numbers: the business comes with $130,000 of inventory (at cost) which (a) has an annual 4.2x turnover rate, and (b) generates a very impressive 52% gross margin. The business is priced at $725,000 which is comprised of an aggressive 2.15x SDE plus the $130,000 cost basis of inventory. The seller contemplates more than matching $85,000 of buyer cash with a $100,000 seller note, with the balance ($540,000) coming from SBA bank financing which should be readily available for a solid buyer. The annual SDE is such that there is ample cash flow both to service debt and pay the buyer an annual salary exceeding $100,000. And all this is after subtracting $75,000 of margin from current vaping sales, which once the vaping market stabilizes should presumably result in a re-coup of the preponderance of any lost vaping business.

An asset sale is contemplated in which the seller retains the cash and A/R (from wholesale accounts that purchase cigars on a regular basis) while retiring all liabilities. The buyer receives the fixed assets (which have a cost basis exceeding $100,000) which include (a) a complete point of sale system that has in-store cameras and cell phone accessibility; and (b) new attractive display cases. Also included is the inventory, and of course the goodwill of the business.

This high cash flowing, bankable business would be perfect for buyers interested in an established business which has (a) very consistent revenues and cash flow, and (b) requires less than 40 hours weekly of owner attention. To learn more about this outstanding niche business, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com).

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:

Two well located stores in desirable communities in West Michigan.

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.

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