Lower Price! Modern Quilting Concept Store. Denver, CO. Relocatable
A NEW MODERN FUN STYLE OF QUILTING STORE THAT HAS BRANDING, FRANCHISING, AND MULTIPLE LOCATION POTENTIAL
FANTASTIC EXPANSION AND BRANDING OPPORTUNITY WHICH HAS A HUGE POTENTIAL UPSIDE
Location: North Denver CO but can be located anywhere in or near Denver Metro
The trailing 12 months earnings thru September 30, 2018 were 163,432 on revenues of 660,991. The store opened in August of 2016. They have been growing at a rate of more than 34%. They believe their 2018 full year earnings will be at least 185K.
This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between. She is a leading part of a new movement to make quilting fun, modern, and profitable again.
The sales price has been lowered to 325,000 plus her cost of merchandise/inventory. The current value of the inventory/merchandise is 312K. Included in the sales price is 70,000 worth of assets that are all less than 2 years old equipment, furniture, technology, and fixtures. They spent $50,000 just on the custom shelving and racks.
This business has is very special and very valuable to the right buyer. There is a very large upside to this business by adding locations and/or building a brand. Plus, her current customers come back over and over. She even has buses come by monthly or periodically from the same places. She has had people visit from all over the country from word of mouth including Alaska. This concept has gone from zero to over 660K in revenues in just 2 years in a small town in north Denver, Colorado.
The store is still relatively unknown. More and more people find out about it every day. Plus, there other ways to increase revenues and profits. They make their own custom quilting kits and can expand this with new designs and can sell these online. These are Fun Designs that range from various holiday patterns, to sports, to hobbies, animals, etc. Designs you won’t find anywhere else. Plus, they are getting national recognition now which allowed them to pick up Babylock, a big sewing machine company, in April which they can either sell or rent. They are also now selling spray water bottles with a custom design of theirs and their contact information. They are getting paid to advertise themselves by selling these water bottles.
No multiple can be given to this unique of a situation. Being in the store and growing this business is a labor of love. The new owner will continue building equity very quickly and may even decide to make this a national opportunity which could be worth many millions of dollars. People are looking for fun, hands on hobbies for all ages. Something fun that is not electronic.
Traditionally, retail stores are valued at a low multiple plus a negotiated value of the inventory. Based on the growth and strength of concept and its potential, I believe this company is priced fairly at 2 1/2 times the trailing 12 months earnings which are expected to continue to grow. Keep in mind that her customers are excited about this store and they drive to see it over and over. If this store was in Denver county, it would be a lot bigger and more successful. I believe this would be true in every other large market. This store has a passionate and recurring customer base with loyalty to this concept, a 22% profit margin, increasing size of local market, and are early to the market with this new wave of modern quilting ideas.
This is a “Fulfilling and Fun” Business to Own and the Owner feels confident that she can teach the buyer the business easily. She has to sell even though she is passionate about the business and its future but her kids are active duty military and have asked their Mother to spend more time with them. This is not a business that can just double or triple. This is a rare opportunity to create a large amount of future equity while loving what you do. This would be great for a family who has an operator and a business/salesperson to help expand this.