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Fabulous designers creating custom arrangements, a strong client list and $79,905 in assets make this floral shop one-of-a-kind. With an outstanding reputation in the Omaha Metro, this business has worked since 1994 to bring customers unique and specialized designs. The 10 employees include 3 floral designers with years of experience, and 1 employee dedicated mostly to working on indoor plant design and upkeep, which is an area ripe with growth potential.
Most of the sales revenue is composed of funeral home accounts, and the current owner has built great relationships and confidence with 3 large clients. The largest grossing event of the year is Mother’s Day, with nearly 10% of sales coming from arrangements, goodies and gift baskets sent that day. 98% of orders placed are call-ins, with only 2% coming from the website.
Offering delivery services to Omaha, La Vista, Bellevue and Papillion, this business is open Mon – Fri 8am – 5:30pm, and Sat 8am – 5pm with same day flower & gift delivery. A part of FTD, services include floral arrangements for every day, holiday, special occasions and weddings. Also available are gift baskets, goodies and jewelry.
The current owner is responsible for ordering, management and client relationships, but is not a designer. Growth potential abounds in increasing indoor decorative plants and upkeep, as well as capitalizing on holiday décor and wreaths, large silk floral arrangements and expanding corporate accounts.
With a 10% down payment of $24,800 and an annual cash flow of $106,067, a new owner will expect to see a first-year profit of $65,282 after payment of debt expenses. This represents a 263% return on investment!
• Year Established: 1994
• Location: Omaha; delivering to Omaha, La Vista, Bellevue & Papillion
• Revenue Breakout: 35% funeral homes, 18% one-timers, 15% commercial accounts, 10% Mother’s Day, 10% weddings, 5% online orders, 5% FTD, 2% walk-in
• Services: floral arrangements (everyday, holiday, funeral, special occasions, wedding), gift baskets, goodies; same day flower & gift delivery
• Growth Opportunities: indoor plants, more outdoor decorative potting, increase corporate accounts, holiday wreaths, silk floral arrangements
• List Price: $248,000
• 2016 Gross Sales of $731,218
• 3-Year Average Cash Flow of $79,064 *** this is reflected in the Cash Flow Analysis below
• 2016 Cash Flow of $106,067
• With a 10% down payment ($24,800) and a cash flow of $106,067, a new owner will see a profit of $65,282, representing a 263% return on investment
• $79,005 worth of assets included in the purchase
o Equipment: $20,134
o Vehicles: $20,400 (1 delivery van)
o Inventory: $19,902
o A/R: $18,569
o Intangible Assets: business reputation & name, relationship with vendors, website & Facebook page
*amounts may vary
• 2016 gross sales of $731,218
• With a 10% down payment ($24,800) and a cash flow of $106,067, a new owner will see a profit of $65,282, representing a 263% return on investment
o Traditional roses, custom, and more!
• Gourmet gift baskets
o Chocolate
o Fresh fruit
o Spa
o Tea or coffee packages
o Corporate packages
• Brand Name Goodies
o Eli’s Cheesecake
o Mrs. Fields
o Lindt
o Godiva
o Starbucks
o Shari’s Berries
• Indoor plants
o Potted palms
o Chinese Evergreen
o many more!
o Established relationship with 3 large funeral homes in Omaha
o Flowers aren’t just delivered, they are tended to and arranged
• 18% One-time orders
o Call-ins (98%)
o Walk-ins (2%)
• 15% Commercial accounts
o Weekly or monthly deliveries
• 10% Mother’s Day
• 5% online orders
• 5% FTD
• 2% Walk-ins
o Years of experience with great talent
o Work with clients to ensure custom designs are to their specifications
• 1 indoor plant designer
o Potted plants & decorative outdoor plants
o Great salesman and knowledgeable
• 2 sales reps
o Answer phones
o Order preparation
• 3 delivery drivers
• 1 bookkeeper
o Daily books & paperwork
• Increase indoor planting options
o Holiday decorating
o Holiday wreaths
• Outdoor decorative potting
o Offer more style options
o Increase availability of this service
o Another great area for the holidays
• Silk floral arrangements
o Large arrangements for home and office
• Corporate accounts
o Offer services to more corporate clients
• Seek out smaller weddings
o These are greater revenue producers than larger weddings
• Bid for events and charity functions
The Firm Business Brokerage used a Cash Flow Valuation to determine the Purchase Price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
With this information, the computation is as follows:
$ 79,064 x 3.2 = $253,004
The Fair Market Value found above positions the business List Price at $248,000 using a 3-year average Cash Flow.
Opportunities
One-of-a-Kind Floral Shop - Outstanding Reputation in Omaha
Sold
CASH FLOW
$106,067
Specifications
Most of the sales revenue is composed of funeral home accounts, and the current owner has built great relationships and confidence with 3 large clients. The largest grossing event of the year is Mother’s Day, with nearly 10% of sales coming from arrangements, goodies and gift baskets sent that day. 98% of orders placed are call-ins, with only 2% coming from the website.
Offering delivery services to Omaha, La Vista, Bellevue and Papillion, this business is open Mon – Fri 8am – 5:30pm, and Sat 8am – 5pm with same day flower & gift delivery. A part of FTD, services include floral arrangements for every day, holiday, special occasions and weddings. Also available are gift baskets, goodies and jewelry.
The current owner is responsible for ordering, management and client relationships, but is not a designer. Growth potential abounds in increasing indoor decorative plants and upkeep, as well as capitalizing on holiday décor and wreaths, large silk floral arrangements and expanding corporate accounts.
With a 10% down payment of $24,800 and an annual cash flow of $106,067, a new owner will expect to see a first-year profit of $65,282 after payment of debt expenses. This represents a 263% return on investment!
Business Highlights
• Location: Omaha; delivering to Omaha, La Vista, Bellevue & Papillion
• Revenue Breakout: 35% funeral homes, 18% one-timers, 15% commercial accounts, 10% Mother’s Day, 10% weddings, 5% online orders, 5% FTD, 2% walk-in
• Services: floral arrangements (everyday, holiday, funeral, special occasions, wedding), gift baskets, goodies; same day flower & gift delivery
• Growth Opportunities: indoor plants, more outdoor decorative potting, increase corporate accounts, holiday wreaths, silk floral arrangements
Financial Highlights
• 2016 Gross Sales of $731,218
• 3-Year Average Cash Flow of $79,064 *** this is reflected in the Cash Flow Analysis below
• 2016 Cash Flow of $106,067
• With a 10% down payment ($24,800) and a cash flow of $106,067, a new owner will see a profit of $65,282, representing a 263% return on investment
• $79,005 worth of assets included in the purchase
o Equipment: $20,134
o Vehicles: $20,400 (1 delivery van)
o Inventory: $19,902
o A/R: $18,569
o Intangible Assets: business reputation & name, relationship with vendors, website & Facebook page
*amounts may vary
Cash Flow Analysis (Profit & Loss Statements)
• 2016 gross sales of $731,218
• With a 10% down payment ($24,800) and a cash flow of $106,067, a new owner will see a profit of $65,282, representing a 263% return on investment
Products
o Traditional roses, custom, and more!
• Gourmet gift baskets
o Chocolate
o Fresh fruit
o Spa
o Tea or coffee packages
o Corporate packages
• Brand Name Goodies
o Eli’s Cheesecake
o Mrs. Fields
o Lindt
o Godiva
o Starbucks
o Shari’s Berries
• Indoor plants
o Potted palms
o Chinese Evergreen
o many more!
Revenue Breakout
o Established relationship with 3 large funeral homes in Omaha
o Flowers aren’t just delivered, they are tended to and arranged
• 18% One-time orders
o Call-ins (98%)
o Walk-ins (2%)
• 15% Commercial accounts
o Weekly or monthly deliveries
• 10% Mother’s Day
• 5% online orders
• 5% FTD
• 2% Walk-ins
Employees
o Years of experience with great talent
o Work with clients to ensure custom designs are to their specifications
• 1 indoor plant designer
o Potted plants & decorative outdoor plants
o Great salesman and knowledgeable
• 2 sales reps
o Answer phones
o Order preparation
• 3 delivery drivers
• 1 bookkeeper
o Daily books & paperwork
Growth Opportunities
o Holiday decorating
o Holiday wreaths
• Outdoor decorative potting
o Offer more style options
o Increase availability of this service
o Another great area for the holidays
• Silk floral arrangements
o Large arrangements for home and office
• Corporate accounts
o Offer services to more corporate clients
• Seek out smaller weddings
o These are greater revenue producers than larger weddings
• Bid for events and charity functions
Valuation Details
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
With this information, the computation is as follows:
$ 79,064 x 3.2 = $253,004
The Fair Market Value found above positions the business List Price at $248,000 using a 3-year average Cash Flow.
Funding Example
Purchase Price: $248,000
10% Buyer Down Payment: $24,800
20% Seller Financing: $49,600
70% Bank Loan: $173,600
Seller Financing 5-year term at a rate of 4.5% equals a monthly loan payment of $925.
Bank Loan 7-year term at a rate of 5.25% equals a monthly loan payment of $2,474.
After business expenses and annual loan payments of $40,785, a buyer would retain a net operating income (profit) of $65,282. A down payment of $24,800 results in a 263% return on investment in the first year!
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $248,000 with the terms listed above, the coverage ratio is 2.6. Please note that the decision of whether to extend a loan on any particular sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857