$5,560,053.00
Asking Price
Address: Huntington Beach,
Status: Active
Posting ID: 290769
2/24/25
Description
This well-established commercial hospitality design and front of house procurement company is one of California’s incumbent market leaders. The design firm, which specializes in interior design, food facilities design, branding and front-of-house procurement, has worked with many of the biggest food service names in California, Nevada and beyond. Incumbent officers will remain with the firm if desired.
The seller-owned 8,000 square foot office / warehouse leases for $18,150 per month. A new short or long-term lease may be entered into or although not preferred, the property may be acquired together with the business at an established fair market value price. All of the company’s furniture, fixture, equipment and enormous historic goodwill related to the design and procurement operations will transfer in the sale.
While competition exists, this 55-year-old firm is an industry incumbent and boasts a blue-chip name in the hospitality industry. Their staff’s skill set and the company’s reputation place them in a select category, providing the firm a unique competitive advantage that industry entrants cannot replicate, which includes ‘last look’ opportunities that others don’t enjoy access to. Hospitality client’s typical 5-6 year facility ‘refresh’ and 10-12 year location remodel cycles provide the firm a somewhat predictable recurring revenue base. It is estimated that 60% of revenues are from new tenant improvements with 40% derived from remodels.
Fortunately for a buyer, the firm has no shortage of client demand and is positioned to expand beyond its existing geographic footprint and service offering. Since this company is often contacted before an architect is selected, it is estimated that an architectural firm that hopes to establish or grow their hospitality practice could benefit the most in an acquisition, as they would not only enjoy the first look at projects that they may not otherwise have access to, but they would stand to walk into a revenue stream that has historically been up to twice the interior design fees. Stated another way, if this opportunity generates $3.5M in design fees, a buyer that’s an architect may have access to up to $7.0M in potential new billings.
The hospitality procurement business does not engage in any form of marketing or outreach to attract stand-alone clients. Rather, they solely cater to design client work. An opportunity exists for management to dramatically expand the front of front of house purchasing and supply company.
The Financials do not include the officer's replacment salaries, which amount to an estimated $380k.
To get more information about this Hospitality Design - Well Established 55 Years business for sale in Huntington Beach please phone Ryan Clark (Broker - BRE License #:01399346) at 310-652-8353 and -- - if you get voicemail please leave a detailed message - make sure you mention you saw this posting/ad #290769 on BizBen.com. In addition to phoning Ryan Clark, make sure you email Ryan Clark above to get more info about this Hospitality Design - Well Established 55 Years, to ask any questions or request an appointment to see this business for sale. Thank you. License # 01399346. The Veld Group.
Contact
Phone: 310-652-8353 Phone: -- Details
Asking Price: $5,560,053.00
Down: $3,000,000.00
Cash Flow: $995,655.00
Revenue: $5,560,053.00
Area: Huntington Beach
City: Huntington Beach
Attributes:
My Notes About This Listing
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Cash flow
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Revenue
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