The Company provides luxury decor rentals, creating beautiful and elegant weddings and other event settings on one of Hawaii’s tropical paradise islands. The rentals include a wide assortment of table linens, chairs, chair covers, draping, lighting, and other related accessories. The rentals offered are for customers desiring a refined and elevated feel for their weddings or other events. Weddings are over 90% of their event sales and about 60% of their wedding clients are visitors to Hawaii. Hawaii is one of America’s top destination wedding locations. The Company is long tenured and well established in the lucrative wedding market on the island, and they are known for providing excellent customer service, quality products, reliability, and timely execution on the day of the event. The Business is on the preferred vendors list for all of the island’s major hotels, which are major wedding venues in Hawaii.
They have a large investment of rental and décor items (items like specialty linens, chairs, chair covers, etc.), plus all of the other tangible assets (furniture, vehicles, etc.) and intangible assets (trade name, website, customer contracts, etc.) which are included in the transaction.
Their sales have grown over 66% from $488,000 in 2016 to $812,000 in 2023. In 2023, these sales generated $239,580 of owner’s profits (“SDE”). They survived Covid and are now stronger than before.
They receive a 50% non-refundable customer deposit for all events and the 50% balance due is paid two weeks before the event date. This results in them having a large negative working capital balance (e.g., a negative $166,488 working capital balance as of 12/31/2023).
Their sales process is very effective with a “success hit rate” on quotes of over 82% over the last 3 years.
They book events up to one to two years in advance. They maintain a strong backlog of contracted events. For example, as of 2/29/2024 they had a contracted future event backlog, with 50% non-refundable deposits, of $354,435 for 170 events booked out to May 2025.
Pre-qualified for a ten-year SBA 7(a) loan. Qualified buyers can purchase this business for less than $100,000 down.
INVESTMENT HIGHLIGHTS
• Over 15 years providing excellent service to their market and building a great brand name.
• The Company is well established and has an excellent reputation among venues, wedding planners, and brides.
• Good historical sales growth and a highly profitable business.
• Hawaii is a highly desired location for destination weddings.
• Destination wedding brides like to have local professionals assist with the event.
• Easy and fun business to operate.
• In summer of 2023 they moved into a new, low cost, larger, more productive and more attractive facility and have a signed lease through May 2029 which will be assigned to the buyer.
• Excellent long tenured sales and operations team.
The business is being offered for sale on a fully turnkey basis with all the needed tangible (including vehicles) and intangible assets, including the owners providing a 5-year non-competition agreement, two weeks of buyer training, and in addition the sellers will provide 50% of the then outstanding customer deposits at Closing to the buyer as a credit to the sales price. As of 2/292024 these deposits totaled $177,217.
Offered fully turnkey. To receive our detailed 80+ page Confidential Profile for this fun and easy to operate business which includes tax return based financial details please contact Hawaii Business Sales.
