Industry: Furniture and Fixtures
Listing ID: 2008-17129
Listing Status: Under Contract
Located in the beautiful Hampton Roads peninsula of Virginia, this established, profitable, and successful home furnishings business has been warming clients homes and hearts since 1977. Whether inside or outside, throughout spring, summer, fall, or winter, this business features products that help transform a house into a warm, inviting, and comfortable home. The diversified product offering consists of both interior and exterior high-quality finishing touches, including gas, electric, and wood burning fireplaces/stoves, fireplace accessories, outdoor patio or pool furniture, hammocks, umbrellas, outdoor grills, and fire pits. No matter the season, this business features year-round product offerings to make your home more enjoyable.
During 2022, the business delivered a top-line revenue of $1,260,173 and over $250,000 in adjusted cash flow. There are a number of significant value drivers powering these impressive results -- superb brand name recognition & equity, long-tenured, award winning community relations, excellent high-traffic location with an impressive showroom facility, high-quality products presented by professional, knowledgeable sales personnel, a custom design process for whatever project that is on the drawing board, and at-home installation, demonstration, and a post-sale service reputation second to none in the marketplace.
The business model was founded on four proven, time-tested, and winning core values:
- Expertise -- they understand the products they offer and develop client- centered solutions.
- Integrity -- they value and promote honesty and transparency in all interactions with clients, staff, and suppliers
- Quality -- they offer only products that work well, that are durable and long- lasting, and that satisfy a client's wishes
- Service -- they provide expert guidance before, during, and after the sale ... and can service every product they offer.
This is a turn-key opportunity with all ingredients in place to enable returns from Day One. If you are looking for an established, profitable, well-known and respected hearth and patio home furnishing company ... this is your business.
FINANCING AVAILABLE. This business has been lender pre-qualified for up to 90% financing on a business loan to qualified candidates subject to full underwriting. See term sheet in the Prospectus for additional details.
The business is located on a very high traffic count major artery featuring restaurants, shopping centers, grocery stores, pharmacies, and other local retail establishments. The location is also close to major connector state highways and interstates which serves to expand the market area into one with a more regional dimension and reach.
Available in the offering are two adjacent land parcels totaling 1.18 acres with approximately 270 feet of direct traffic frontage. The site houses an interior showroom with over 4,500 sq. ft. of display space and a separate inventory storage area (1,125 sq. ft.) including an additional 520 sq. ft. of mezzanine storage. Together the building comprises over 5,625 square feet. The outdoor display area adds another 600 square feet of covered product display with an open large aggregate patio area.
There is also two (2) conex storage containers on-site and access to an off-site leased warehouse space very close to the facility. The real estate is available for purchase for $750,000 or for lease at $4,375/month on triple net terms.
Reason For Sale
Owner is retiring after 45 years in the business.
Products, Services & Licenses
This business represents a number of different manufacturer brands and maintains excellent working knowledge of the various product lines, technological improvements, and parts and service programs. The installation of the fireplace and grill products often involves working with interior designers and construction companies to deliver a workable product solution within the available space while connecting to service utilities. As such, some working level design is helpful and a Commonwealth of Virginia Contractors license and/or a Tradesman license are key enablers. The seller holds these required licenses and will work with any prospective buyer in order to fulfill and bridge a timing gap during the business transition.
Terms & Options
The business is housed on two adjacent land parcels totaling 1.18 acres with approximately 270 feet of direct traffic frontage. The site includes an interior showroom with over 4,500 sq. ft. of display space and a separate inventory storage area (1,125 sq. ft.) including an additional 520 sq. ft. of mezzanine storage. Together the building comprises over 5,625 square feet. The outdoor display area adds another 600 square feet of covered product display with an open large aggregate patio area. There is also two (2) conex storage containers on-site and access to an off- site leased warehouse space very close to the facility. The real estate is available for purchase for $750,000 or the buyer can lease the property for $52,500/year ($4,375/month) on triple net terms.
The Home Furnishings industry exhibits a low level of market share concentration. The four largest players in the industry are estimated to account for 29.9% of industry revenue in 2021. The remaining share of the market is mostly composed of small to midsize players that supply local demand. IBISWorld identifies the most important success factors for this industry are:
Ability to control stock on hand: Operators need to ensure that adequate stock controls are in place to reduce inventory costs and increase stock turns.
Proximity to key markets: Operators should be located in areas with high exposure to maximize exposure to consumers. Attractive product presentation: Operators should clearly display products in an appealing manner to promote purchases.
Experienced Work Force: Since competition is fierce in this industry and customers often require help and advice regarding products, it is important to have highly knowledgeable staff.
Effective product promotion: In this competitive market, the ability to inform customers of various deals and sales is critical to increasing store traffic. Due to long, established tenure, market-leading brand equity, low local market competitive density, and above average standing on all these key factors, this business is well positioned for continued success and growth versus its primary competition.
Potential for Growth
Expansion of Geographic Focus
Product Line Extensions (Pool Supply, Spa, Outdoor Lightning) Additional Marketing Resources
Business Development Staffing
Total Sales: $1,260,173
Cash Flow: $253,611