Last Revised: 10/25/19. Posting #: 10249143
Key Words: staging, real estate staging, home staging, san francisco
Financial Info: Price: $259,000. Annual Gross Revenue: $537,000 in 2018. Seller’s Discretionary Earnings in 2018: $185,000+. Some seller financing may be available, with 50% down.
Profile: The #1 factor in getting multiple offers and premium prices for homes for sale in the Bay Area is professional, high-caliber, state-of-the-art staging, optimized for both in-person and online photographic viewing.
This San Francisco area staging business has years of experience, market presence, and praiseworthy reputation. The best and most successful real estate agents seek them out for premium properties.
Not only does the company provide the highest quality of furniture, furnishings, artwork, and accessories; but, they also design and manage general “sprucing up” services—cleaning, painting, furniture removal, etc., to prepare the home for the perfect presentation.
> High-end furnishings from an extensive & versatile inventory
> Furniture placement to enhance room atmosphere, maximize space, and optimize traffic flow
> Decorating with an eye to the all-important photo & video portfolios essential to current real estate marketing practices
> Selection and installation of artwork featuring local artists
> Room styling through placement of modern accessories and unique accents
> Addition of interior plant life & arrangements
> Paint color, flooring, & lighting consultation
> Outdoor space consultation, styling, & staging
Sales are over $500,000 per year:
2017, $461,000; 2018, $537,000; January – August 2019 (8 months) $354,000, on track to exceed 2018 sales.
Seller’s Discretionary Earnings (“SDE”) for 2018 are calculated to be $185,000+/-.
The fair market value replacement cost (of similar kind, age, and condition) of the physical assets used in staging and other tangible operating assets well exceeds the asking price, approximately $375,000. An extensive interactive database of assets is available for review by prospective buyers.
The three-member staff includes the owner-operator and two full-time designer-stylists, earning $28/hour. The actual moving in and out of furniture is on a contracted basis with a moving company. There is a pre-existing relationship between the owner and the moving company resulting in moving costs greatly in excess of industry standard; a new owner could save over $60,000 per year by switching to another mover (reflected in the SDE calculation).
The business currently operates out of a city center warehouse at a rent of approximately $9,691 per month for 6,250 square feet. A new owner could realize additional profit by a strategic move to another location.
The Transaction: The business is offered for total asking price of $259,000 (approximately 50% of annual sales / ~1.4x estimated SDE). This is for the entire business— tangible assets, e.g., equipment, machinery, furniture, fixtures, etc.; and intangible assets, e.g., website, trademark, logo, trade name, telephone number, methods of operation, vendor/supplier resources, customer lists, etc.; and good will. It does not include cash, accounts payable, accounts receivable, rental (lease) deposit, or corporate entity. Substantial seller financing may be available for a qualified buyer with adequate collateral, and a 50% down payment. The seller is open to reasonable negotiation of the price in return for a simple, no-hassle, expedited transaction.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.
Professional Resources & Contacts To Help You Close Your Deal!
Profile: I am an experienced entrepreneur, attorney, & business professor. I & my EvergreenGold® team offer business owners sound advice & expertise to build business value & achieve profitable sales. Call me today for a FREE business evaluation & SWOT analysis for your business anywhere in the USA.
Key Words: tim cunha, cunha, EvergreenGold, california, sf bay area, business broker, brokerage, san francisco, palo alto, santa clara county, contra costa county, alameda county, marin county, sonoma county, san mateo county
Profile: I founded BizBen and BizBenNetwork to make the process of buying and selling small to mid-sized businesses more efficiently. I currently head up the Facilitator team at BizBenNetwork where we assist BBN Members with connecting with others to facilitate a deal. Thanks for using BizBenNetwork!
Key Words: BizBen, BizBenNetwork, facilitator, advisor, consultant, peter siegel, siegel, bbn
Profile: Willard Michlin is a business broker for 23 years. As a CPA & Certified Fraud Examiner, he works with buyers to get a FREE market valuation as well as full industry & financial due diligence on businesses they are interested in buying. He also offers FREE do-it-yourself due diligence training.
Key Words: willard michlin, due-diligence, due diligence, michlin, kismet
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