If you are looking to sell a flooring company please do not hesitate to give me a call.
You may also be interested in reading about one which I sold THREE times.
The first time I sold my client’s flooring company, I must confess, I tried to hire him to come and work for me as a broker at Pro Biz Consulting. The Owner, a young man, was outstanding! He had previously sold new cars and had the friendly, outgoing-ness, the ambition, the guts and the brains… Admirably, he had started it from scratch, on a shoe string, and it was already nice little business. The problem was, it had only been open less than two years! He wanted to move to Florida. Now North Carolina is a nice, fairly temperate state, I love living and working here, but who can argue with Orlando in January?
Normally I don’t accept businesses that are less than 3 years established. And since my practice is generally “A Million and Above”, this was really too small for me to list and market. But as I say, the young man was outstanding and , frankly, I hoped by Spring.. because that’s how long it would take to sell, that he would be persuaded to stay and maybe come to work for me. So I did the simple valuation and priced it at only One times Cash Flow plus Inventory. That was a very low MULTIPLE, but it was very small and still only a year and a half in business. He was of course, quite happy, he had less than $15,000 invested, had made over $60,000 since starting it and we priced it at $125,000. ($50,000+$75.000 Inventory) Although he owed about $25-30,000 on Inventory, the goal to get at least $100,000 Total and after commissions and paying off debt, walk away with $50,000+.
It didn’t take long at that price. We had an Offer of $100,000 in less than 60 days. The deal was $50,000 CASH and a $50,000 NOTE secured by the business.
In other words, the way to sell a flooring company is to get a proper valuation and post it for sale.
Don’t forget to read how this business was sold THREE times!