The company does nearly 200 events per year – the income breakout is about 70% from pipe and drape rentals and because they own all of the inventory this has a very high margin, 30% of the business comes from planning and coordinating subcontractors, such as floral, AV, DJ, or catering.
Their target client is 40% Corporate Events, 35% comes from referrals from audio visual companies, 25% comes from nonprofit events or private events such as howers and quinceaneras.
This company has been providing pipe and drape services to produce beautiful backdrops for events within a 100-mile radius of Houston for over 20 years.
The venue type that this special event company flourishes in are at large banquet halls or convention centers, trade shows, Gala’s and pageant stages.
The purchase comes with 2 box trucks and a trailer used to haul all of the rental pieces, an abundant amount of inventory such as drapery, linens and table decor and there is almost $60K in customer deposits that will transfer over for upcoming events.
There is a core team of 6 that are well tenured, plus they have a pool of vetted, repeat contractors that they work with on a regular basis.
The owner is selling as she is in her 60s and entering retirement, she is happy to stay on train and transition for one year.
Additionally, she is willing to finance 10% to show her vested interest in the success of the business.
The overhead is very low as there are only 4 storage units which is $450/ month. Priced at $620,000, with a diverse client base consisting of corporate entities, audiovisual companies, fundraisers, and private events, has built a solid reputation in the Houston area with a profit margin of 27%.
A 10% down payment of $62,000 returns $109,895 in the first year after debt payments!
