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Two Very High Cash Flowing Tobacco/Vape/Glass/CBD Stores

MI

Seller Financing Available
Two Very High Cash Flowing Tobacco/Vape/Glass/CBD Stores
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Asking Price: $715,000

Cash Flow: $211,000

Gross Revenue: $1,100,000

EBITDA: N/A

FF&E: $100,000

Inventory: $130,000

Established: 2004

Two Very High Cash Flowing Tobacco/Vape/Glass/CBD Stores

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Business Description

If a West Michigan retailer (specializing in make your own cigarettes, cigars, CBD products, glass, accessories and the like) with two, well-located stores in desirable communities with minimal rent, sane hours, and a SDE (seller’s discretionary earnings – the historic cash flow available for a buyer’s salary and to service debt) of over $200,000 annually sounds appealing, read on as this could be the business opportunity for you.

Year after year the two stores have combined annual sales exceeding $1,000,000 and have averaged $1,100,000 annually over the past four years. And this with stores that are only open 59 hours per week (10-7 daily; and 12-5 Sundays). A modest expansion of the stores’ hours would seem to present an easy opportunity for increased sales.

With combined annual rent of only $45,000 (just 4% of revenues), this business is poised to continue its excellent financial performance aided by a loyal customer base…one need only spend a few minutes in the stores to pick up the positive vibrations.

After nine successful years, the owner of these businesses (which have been in continuous operation since 2004) has his eye on some non-competitive opportunities which will require him to transition the stores to a new owner. The businesses boast a well-compensated, loyal, full-time general manager who leads a staff of three full-time and three part-time employees which includes full-time assistant managers at each location. The strong team allows the owner to average just 25 hour work weeks.

Let’s talk numbers: the business comes with $130,000 of inventory (at cost) which (a) has an annual 4.2x turnover rate, and (b) generates a very impressive 52% gross margin. The business is priced at $715,000 which is comprised of 2.75x SDE plus the $130,000 cost basis of inventory. The seller contemplates more than matching $75,000 of buyer cash with a $100,000 seller note, with the balance ($540,000) coming from SBA bank financing which should be readily available for a solid buyer. The annual SDE of $211,000 is such that there is ample cash flow both to service debt and pay the buyer an annual salary exceeding $100,000. And all this is after eliminating $75,000 of margin on vaping sales, which once the vaping market stabilizes should be an instant, no-cost increase to the SDE.

An asset sale is contemplated in which the seller retains the cash and A/R (from wholesale accounts that purchase cigars on a regular basis) while retiring all liabilities. The buyer receives the fixed assets (which have a cost basis exceeding $100,000) which includes a complete point of sale system that has in-store cameras and cell phone accessibility, the inventory, brand new attractive display cases, and of course the goodwill of the business.

This business would be perfect for, among others, anyone who has owned (or considered buying) a convenience store, restaurant, liquor store, pizza establishments, or the like – this opportunity provides far more cash flow with significantly less effort. To learn more about this outstanding niche business, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com).

Detailed Information

Inventory:
Included in asking price
Employees:
7
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Two well located stores in desirable communities in West Michigan.
Financing:
$100,000
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(from currently available funds)
 
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Michael Greengard

Business Listed By:
Michael Greengard

Praxis Business Brokers

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