This is a hands on retail store that sells many proprietary products that is a must see.  The trailing 12 months revenues through July 31st 2019 were 1,029.361 with the earnings now up to 251K which is significantly higher than 2018’s 726K in revenue and 156K in earnings.  This company is now selling at less than 1 1/4 times the earnings plus a negotiated amount for the inventory and is now selling for less than 2 1/4 times the earnings including the inventory.  This is very inexpensive for a company growing this quickly.  Plus, the owner will either offer a normal transition or stay at least one year working 30 hours a week for a reasonable salary with 5 weeks’ vacation time.  She will also help start and inventory a new location for the owner and will even consider keeping up to 25% of the company if a buyer would like to partner with her and finance the future growth.  She very much believes in the future of this concept and so do I.   This is a fun business with a lot of upside to build equity.  

The owner have leased their location since August 2016 and then recently bought their location in December 2018 plus the empty space next door.  This resulted in them doubling the space they were in at the same time




Location: North Denver CO but can be located anywhere in or near Denver Metro

The trailing 12 months earnings were 251K through July 31 2019 from earnings of 1.03M.  2018 had earnings of  157K on revenues of 726K.  The store opened in August of 2016.  They have been growing at a rate of more than 34%.  She believes her 2019 full year earnings will be at least 200K based on their growth rate, full inventory as of Jan 1 2019(no longer has to add to it), and because the doubling of the size of the store will allow new sources of revenues.  

The sales price has been lowered again to 290K plus only 75% of her cost of merchandise/inventory.  The current value of the inventory/merchandise is 351K.  Included in the sales price is more than 80,000 worth of assets that are all less than 3 years old equipment, furniture, technology, and fixtures.  They spent 50,000 just on the custom shelving and racks.  

This is not a normal listing, it is a force of nature, a reinvention of an outdated industry, a potential new national brand, a potential new national franchise, and a place for kids, grandparents and everyone in between.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.  They were featured the May 2018 Issue of Quilters Sampler Magazine by Better Home and Gardens as one of North America’s 10 best Quilt Stores.  This magazine has over 300,000 subscribers and that edition hit shelves in April of 2018.  You must see the video interview of the owner and walkthrough of the store in the data room link above before reading further.

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 1M in revenues in just 3 years.   

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 the Babylock line which carries big sewing machines in April 2019 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 should be priced much higher that the current price she is asking for.  Both Revenues and Earnings 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 on a main street in Cherry Creek or Central Denver, it could 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.

The sales price is now 290K plus only 75% of her cost of inventory.  This is an LLC. The business is being offered with the Seller keeping her cash, AR, and AP which are not large balances and transferring the business debt free.  This will not quality for a bank loan so the buyer will consider various down payments depending on the strength of the offer and the buyer.