This is one of my favorite listings I have seen since I started doing this a long time ago.   One of the owners will also stay and help and even consider keeping some ownership for a buyer that wants to expand this the way it deserves to = this can be either a hands on or absentee owner.  This is a new concept retailer, new National Brand opportunity that is hands-on and is practically creating a cult following.  The store is very fun and is a must see.  The trailing 12 months revenues through October 31 2019 were 1.06M with the earnings now up to 375K which is significantly higher than 2018’s 726K in revenue and 169K in earnings.  This company is now selling at less than 1 times the earnings plus inventory.  The total of the trailing 12 month earnings of 375K plus their current cost of inventory of 391K totals 766K and she is only asking for 750K total sales price for everything.  THE 750K TOTAL SALES PRICE IS LESS THE COMBINATION OF THE 375K EARNINGS AND THE 391K IN INVENTORY. 

They are selling to spend more time with family but they love the store, the employees, and its potential.  The main owner prefers to stay employed there either as a small percent owner or as an employee.  A buyer can either lease the space for only 23/sq foot or buy the real estate at market value which is 850K.  It should appraise for more than this, if it appraises for less, she will adjust the price down to match.  They prefer to sell to a buyer who will open other locations with their help.  They will also consider keeping up to 25 percent of the company if a buyer would like to partner with them.  They very much believe in the future of this concept and so do I.   There is a lot of opportunity to build a lot of equity.  Bottom line, they don’t want to sell but has to for family reasons unless the new owner allows them to be out of town for 10 weeks a year.  Consider this, If her location in a 22,000 person town can go from 0 to 1.06M in Revenue and 0 to 375K in Earnings after only 3 years and 1 month, a buyer could double that in main street Denver, Colorado Springs, Salt Lake, etc.  They don’t have the money to expand to new locations. It is very important to submit the NDA link below to be able to receive the video interview of the owner and walkthrough of the business to fully understand this opportunity. 

Every single month this business grows.  If you were to annualize the last 6 months of earnings, this company would be worth twice what they are asking.  I don’t believe any of the earnings before the last couple of months matter because this business grows every single month for 3 years.  This is a very inexpensive business for how profitable it currently is.

For Sale:



Location: North Front Range Colorado

The trailing 12 months revenues through October 31 2019 were 1.06M with the earnings now up to 375K which is significantly higher than 2018’s 726K in revenue and 169K in earnings.  The company has been growing at a rate of more than 34 percent.  She believes her 2019 full year properly adjusted earnings will be at least 390K based on their growth rate and she no longer need to build inventory as of September 2019. 

The sales price is only 750K which is less than 1 times the current earnings plus her cost of merchandise/inventory which totals 766K.  Keep in mind this company gets cheaper every month because the revenues and earnings go up every month.  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.  They have modernized quilting to make fun, modern, for all ages, and is so hands on Amazon cant hurt them. 

This business is very special and very valuable to the right buyer.  There is a very large upside to this business by adding locations and building the new brand.  Plus, her current customers come back over and over.  They even have buses come by monthly or periodically from the same places.  They have had people visit from all over the country from word of mouth.    

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 a line of big sewing machines in April 2019 which they can either sell or rent.  They are also selling high margin 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.  A new buyer can convert to manufacturing these directly and make more money.  They sell a lot of them.

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 this concept and its potential, I believe this company should be priced much higher than the current price they are asking for but they need more time off.  One of the owners can manage the store for a new owner or they can promote one of her employees to manage the store for an absentee owner.  Both Revenues and Earnings are expected to continue to grow.  Keep in mind that their customers are excited about this store and they shop there over and over.  This store has a passionate and recurring customer base with loyalty to this concept, a 25 percent Net Profit Margin, fast growing population of their 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 Owners feel confident that she can teach the buyer the business easily.  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, private equity, or an entrepreneur who wants to help expand this.

This is an LLC. The business is being offered with the Seller keeping their cash, AR, and AP which are not large balances and transferring the business debt free.  Based on the fast growth rate, if a buyer needs a bank, they will probably want to use 2019’s full year numbers to get more money from the bank which is fine with us.