Strong contracts in place and no inventory to manage have allowed this office furniture dealer to steadily grow year after year. Gross sales increased by 32% between 2015 and 2016, and 2017 is expected to stay strong. With an edge in healthcare-based office solutions, the company has furbished many hospitals in Kansas and Missouri. Even so, they are growing in demand for educational organizations and corporate offices.
A successful sales team is in place and has helped the company expand into areas outside of Kansas City. Utilizing TeamDesign software, sales personnel are able to work in the office or remotely. While the sales team handles much of the design and space planning aspects, there is a full-time Designer on staff to ensure layout and design are accurate and suitable.
Growth exists in increasing Project Management services. The seller has seen an increase in consultations for clients’ project managing needs, and continuing to market this service should produce a nice revenue stream. Also, as corporate clients are becoming a larger part of sales, seeking out these customers is another path to consider.
In operation for 13 years, this company continues to grow every year, and has built a great reputation with great results. This is a wonderful chance to take an already successful company to the next level!
Equipment: $22,840 – software (AutoCAD, 2020, TeamDesign), furniture, fixtures
Intangible Assets: Great reputation, great results, ongoing contracts
Customer Deposits: $465,739
*amounts may vary
Years in Business: 13
Location: Kansas City
Service Area: 70% in Kansas City / 30% in Northeastern Kansas. Occasionally, some work in rural Missouri healthcare.
Client Demographics: 50% Healthcare-based, 30% Education, 20% Corporate
Building: 4,500-sq. ft. for office space and showroom
Reason for Selling: Retirement
Employees: 8 FT – Sales, Design & Project Management. Installation and delivery is contracted out.
Hours: Mon – Fri 8am to 5pm
Seller Training Period: 90 days
Growth Opportunities: Grow corporate clients. Increase Project Management services/consulting.
Current Owner’s Responsibilities: Seller oversees finances and contracts, but DOES NOT design or project manage.
Owner Profit/Cash Flow
YOY Growth Trends: 76% increase from 2014 to 2017!
Valuation: 2017 Avg Cash Flow x Multiple = Price
$547,381 x3.29 = $1,800,883
12.5% Buyer Down Payment:$225,000
12.5% Seller Financing:$225,000
75% Bank Loan:$1,350,000
A 12.5% down payment of $225,000 returns $260,386 in the first year after debt payments.