Business for Sale

High-End Rug Restoration, Cleaning, and Sales to the Affluent

BizEx1210-AE

Background

General Location:Santa Monica, CA
Category: Consumer Services (B2C)
Janitorial & Carpet Cleaning Services
Years in Business:31
Under Present Owner:31
Hours of Operation:M-F 10:00am-6:00pm; Sat-Sun 12:00pm-5:00pm
Owner Hours:M-F 10:00am-6:00pm; Sat-Sun 12:00pm-5:00pm
Training:8 weeks @ 15 hours
Organization Type:Sole proprietor
Lease Expiration:
Lease Options:
Building Size:
Employees:2
Reason for Sale:Retirement

Financials

Asking Price:$89,999
Down Payment:Negotiable
Gross Sales:$118,008
Discretionary Cash Flow:$78,542
FF&E:$0
Inventory Included?No
Inventory:$20,000
Min. Operating Capital:$5,000
Real Estate Available?No
Rent:$0
Payroll:$500
Financing:Call

2017 2016 2015
Gross Sales $ 118,008 $ 112,047 $ 116,021
Gross Profit $ 88,008 $ 90,047 $ 93,021
Disc. Earnings $ 78,542 $ 73,572 $ 70,084

Description

Over the last 30 years, the owner has been cleaning, selling, and restoring high-end expensive rugs, generally valued between $2,000-$10,000.

Most of his business is on the West Side, serving clients with a lot of disposable income. Typical clients include entertainment professionals, doctors, lawyers, and business professionals.

Many years ago, the owner traveled to the Middle East where he learned how to make high-end rugs from scratch and has perfected a cleaning and restoration method. He will train the new owner how to do the same.

The earnings of the company have been flat because the owner is 77 years old and has been cruising based upon his recurring revenue base. He doesn’t do any marketing because he’s looking forward to retiring. The new owner can easily expand the business by doing some basic marketing that the current owner used to do, including Yelp, and newspaper advertising.

The owner has vendors who he’s trained to provide the services for his business, which means the owner has little overhead and virtually no payroll. The owner is essentially marketing his business, selling his services/expertise and has vendors doing fulfillment.

The ideal new owner is more of a marketing person than a rug person, because the services are outsourced. The new owner will market, handle the sales, and instruct vendors on how to do the restoration. Training will be provided.


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Disclaimer: The information herein is furnished by the seller; BizEx has not verified this information and makes no representation or warranty as to its accuracy, completeness, or authenticity. Future earnings may differ from past earnings. Discretionary Earnings is defined as earnings before deducting interest, taxes, depreciation, and amortization, and adding Owners salary, benefits and non recurring expenses.

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Alex Estrin
Business Broker / M&A Advisor
4551 Glencoe Ave., Suite 210
Marina Del Rey, CA 90292
Office: (310) 882-2200 ext 158
Direct: (310) 882-2200 ext 158
Lic#: 01919847




Eric Mellem
Business Broker/ M&A Advisor
4551 Glencoe Ave. #210
Marina del Rey, CA 90292
Office: (310) 882-2200 ext 146
Direct: (310) 293-6414
Lic#: 01220802