List Price: $405,000
Owner Profit/Cash Flow
Profit Margin: 14%
Multiple: 2.85 *Multiples range from 1-5, with the average being 3
Valuation:  Cash Flow x Multiple = Price
$144,502 x 2.85 = $411,830
This unique and well established, since 1996, zero to ten-year-old clothing shop is in a prime location allowing them to buy and sell clothing every day. This store is currently doing 5% new clothing and 95% resale. This is not your typical second hand store. It features brands such as: Polo, Playskool, VTech, Disney, Carters, Osh Kosh, Justice, and more. It is located in a great part of town and is constantly flowing with clientele. This business has been doing over a million in sales consecutively in its current location.
The store is offering parents an easier and more cost efficient way of providing the best for their children without breaking the bank. Its Lincoln location, which has an overall population of over 258,000 people, allows the business to continue to stay busy and have the staff of 14 consistently assisting clients. The staff members are knowledgeable about child safety and committed to providing a safe environment to shop, and safe products to buy for all.
After all debt services are paid, a new owner can expect a Net Operating Income (Profit) of $77,897. That is a 192% Return on Investment in year one of ownership.
Assets Included in Purchase: $174,003
*amounts may vary
Location and Service Area: Lincoln, NE and surrounding communities
Demographics:Located in a population of over 258,000 people that are 50% Female and 50% Male with a median age of 31 (prime time to have children within the family)
Lease: 5,400 sq./ft. at $7,281/month all included
Reason for Selling:Health Concerns
Employees: 14 – 1 Full Time Inventory Manager, 13 Part Time
Hours: Monday – Saturday 9:30AM to 8PM and Sundays 12PM to 6PM
Seller Training Period: 90 Days post-close
Growth Opportunities: Continue to grow a social media presence to expand to a wider market
Current Owner’s Responsibilities: Overseeing Day to Day Operations, Payroll and Bill Pay
Purchase Price: $405,000
10% Buyer Down Payment: $40,500
20% Seller Financing: $81,000
70% Bank Loan: $283,500
After all debt services are paid, a new owner can expect a Net Operating Income (Profit) of $77,987. That is a 192% Return on Investment in year one of ownership.
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.