Raleigh, NC (Wake County)

Established:2002
Ad#:1830295 
Added: 03/04/21

Super Profitable! Net Adjusted EBITDA of $3.5M! Despite COVID Business Did Well!

SIGN THE NDA BY COPY PASTING LINK BELOW:

https://generational.tfaforms.net/4660083?DealID=a1L2G000005YIce

BUSINESS SUMMARY:

Founded in 2002, this 20-year-old Virginia based company, operates 12 Sales/Leasing and retail consumer products stores in Virginia and North Carolina under three sperate entities.

One of the Company’s entities operates nine locations that are strategically located in small towns with little and or no competition operated in Virginia. The Company’s second entity has two locations; these are a mixture of a Sales/Leasing and retail business operated in Virginia. The Company’s third entity operates one location that is based out of North Carolina; this business is a retail operation with low overhead.

In the leasing business, the Company offers an alternative path to ownership for individuals who do not have the means to pay cash or cannot qualify for traditional financing. The Company’s primary differentiators are that it is a locally owned business, staffed by caring employees with an unwavering commitment to excellent customer service and purchase satisfaction. The Company’s employees have over 370 years’ experience in the lease-to-own industry. The Company enjoys an extremely high rate of repeat and referral business.

INVESTMENT APPEAL

• Stable Longstanding Business: The Company has been around for 20 years and is highly reputable and well known in the industry. The Company enjoys 80% rate of repeat business and has 29,450 active accounts.
• Management Will Foster Transition: Ownership is interested and willing to remain with the Company after a transaction to facilitate an orderly transition to new ownership and, as appropriate, assist in achieving long-term strategic growth objectives.
• Superior Name and Reputation: The Company enjoys a long-standing 20-year reputation for quality product, service, and superior reliability. That is why it enjoys a high rate of repeat and referral business.
• Strong Supplier Relationships: The Company represents many well-known furniture, appliance, and mattress brands, and have strong and longstanding relationships with them.
• Strong Recurring Revenue: More than 50% of the Company’s revenue is derived from lease-to-own sale. As the customers pay weekly or monthly, it provides steady source of reoccurring income for the Company.
• Easy-To-Replicate, Standardized Growth Formula: With 12 operating locations across Virginia and North Carolina, the Company has a proven formula for success which can be easily replicated in any new stores opened in other markets. The Company’s business model is easily implemented, fiscally sound and operationally stable.
• Outstanding Growth Opportunities: There exist several opportunities for the Company to significantly increase revenue and profit, including leveraging the Company’s proven reputation to pursue and penetrate new and existing markets. These opportunities are easily attainable given the appropriate investments in capital and human resources.
• High-Caliber and High-Tenured Staff: The Company fosters a workplace where it’s extremely experienced and talented personnel are able to thrive and grow, and therefore remain long term.
• Diversified Customer Base: No single customer accounted for 1.0% or more of revenue during the historical period. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account.
• Strong Historical Sales Growth: Historical sales have grown from $5,169,000 in 2018 to $6,545,000 in the fiscal year ending December 31, 2020, representing a compound annual growth rate of 12.5%. Sales have grown consistently year-over-year in the historical period.
• Strong Earnings & Margins: The Company experienced strong EBITDA margin over the historical period, averaging 38.0%.

Detailed Information:

Location:
Raleigh, NC

Employees:
76

Facilities:
The Company operates 12 Sales/Leasing and retail consumer products stores in Virginia and North Carolina under three sperate entities.

Support & Training:
The Seller is proud of the business they've built. Their primary goal is to make sure the new Buyer is successful. Hence, they will stay on as long as the Buyer needs them.

Reason for Selling:
Retirement