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Outdoor Power Equipment Retailer For Sale

California - North, US
Asking Price:
$1,000,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$2,670,000
Cash Flow:
$325,000

The company is an outdoor power equipment retailer located in the beautiful rural Sierra Foothills east of Sacramento, an hour’s drive from world-class fishing, boating, camping, and skiing. Product lines include chainsaws, generators, lawn mowers, zero-turn mowers, string trimmers, pressure washers, leaf blowers, snow blowers, log splitters, rototillers, and chipper/shredders. The company also services most of the equipment it sells. Because of its extensive inventory of power equipment, customers come from as far away as 40 to 50 miles. Approximately 74% of its customers are retail consumers and 26% are commercial accounts. The commercial customers includes several fire departments in the region, Cal-Trans, CalFire, and various municipal agencies of the surrounding counties. No single customer accounts for more than 10% of the company’s annual sales.

Power equipment sales accounted for approximately 86% of the company's sales over the last four years. Accessories and service make up the remaining 14%. Major brands include Stihl, which accounted for approximately 52% of total equipment sales over the last four years; Honda, which contributed 19% of equipment sales; Husqvarna with 8%; and, Briggs Home Standby with 6%. Equipment accessories for all brands contributed 11% of the equipment sales during the last four years.

Three-year average revenue is $2,670,000. Current-year revenue is $2,950,000. Three-year average SDE is $350,000. Current-year SDE is $469,000. Current owner’s equity in inventory is $350,000. Additional inventory is subject to flooring line loans which the buyer must assume ranging from $125,000 to $275,000 depending on the season. Hence, at peak season the company would carry $600,000 inventory, $325,000 owned by the business and $275,000 covered by flooring lines.

The operation is a husband and wife partnership. However, the above Seller’s Discretionary earnings have been recast to reflect one owner’s compensation. If one’s spouse will also work in the business add $50,000 to the above Seller’s Discretionary Earnings. Rent has been recast to reflect the debt service and real estate taxes from a mortgage used to acquire the real estate. (In other words, the $350,000 SDE is net after paying for the new mortgage payments and real estate taxes.)

The business has been pre-approved for a qualified buyer for an 85% SBA loan at a 4.15% rate fixed for five years, amortized over 15 years (subject to change due to market conditions). Act before 9-30-2021 and SBA will waive all guarantee fees. Sellers are willing to carry an additional 5%. Hence, a qualified buyer can acquire the business and real estate for as little as $150,000 down. Buyers must also qualify to assume existing flooring-line loans which range from $125,000 to $275,000 depending on the season.

Property Information

Location:

Sierra Foothills

Premises Details:

Property: 0.43 acres Retail Space: 3,168 sq. ft. Warehouse Space: 1,944 sq. ft.

Real Estate for Sale $500,000

Size in square feet:
5,112

Business Operation

Employees:
3 full time/3-4 seasonal

Other Information

Furniture / Fixtures value:
$71,000 - included in the asking price
Inventory / Stock value:
$325,000 - included in the asking price

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