For Sale: Real Estate Staging Service - High Net Income - Santa Clara County

Current Status: Active     Posting #: 266245     Last Refreshed: 5/3/21    
Real estate staging is the most important factor in effective marketing of upscale homes in the Silicon Valley Metro Area. This well-established, 6-year-old, profitable company is a highly-respected and sought-after interior stager in Santa Clara County. Using their versatile and fashionable furnishings, the experienced designers and stagers serve the exacting requirements of the most prestigious real estate brokers.

The market served is primarily Santa Clara County/San Jose Metro Area on the San Francisco Peninsula, an affluent area with consistently active real estate markets demanding high-end staging. Services include staging, design, and property preparation.

Annual sales are in the $440,000 range, with Seller's Discretionary Earnings ('SDE') of $164,000+ for the owner-operator. The fiscal year runs from April through March. Financial records are attached for the last three completed fiscal years; the P&L for the first three quarters of fiscal 2020 (April-December) will be provided as soon as prepared.

Sales for 2019 (ending March 30, 2020) were $436,846 with SDE of about $164,180. (See the Sales History and SDE Calculation table below.) Sales for fiscal 2020 are expected to be comparable.

The business is housed in two adjoining 1800-square-foot warehouses (total: 3,600 sq. ft.) renting for $5,333 per month (including CAM); a prospective buyer would arrange with the landlord for continued occupancy before becoming committed to a purchase.

The customer base is comprised of real estate agents who engage services directly or refer sellers to the business. They have over 36 active customers, with about 500 customers in the database. The company is not dependent on any one broker for any significant part of the business. The three largest customers represent 13.5%, 12.1%, and 6.5% of sales, respectively.

Opportunities for increased growth would be doing stagings on weekends and hiring a larger crew to meet the demand that is regularly turned away because the company has reached operational capacity.

Staff:
One full-time owner-manager.
Two part-time employees.
Two part-time 'on-demand' contract movers.

The physical assets include an extensive inventory of every kind of furniture, furnishing, and accessory imaginable: sofas, chairs, tables, lamps, rugs, beds, mattresses, pillows, linens, paintings, vases, etc., etc. The cost to replace all these items with articles of similar age and condition would easily exceed the asking price for the business, plus the time and effort to source and acquire them. Nothing is 'old' or 'tired'; the assets are regularly culled so that only the best is used in staging, something very much appreciated and valued by real estate professionals. (According to the owner, the physical assets have a book value of $521,000.)

The owner is open to a training, transition, and consultation period, depending on the needs and wishes of the new owner and the terms of the transaction.

Price & Transaction. The price is $399,000.00 (subject to negotiation and terms). This price is 2.6x annual SDE, 1x gross annual sales, and less than the replacement cost of the tangible assets alone. The business is offered as a sale of all the tangible/physical assets of the company, plus the intangible property, including the highly-valuable business name, logo, websites, phone numbers, customer data, etc. It does not include accounts receivable, cash on hand, and facility rent deposits. The seller will be responsible for all accounts payable through the date of closing. The current owner would be open to a training & transition phase to facilitate a smooth transfer to new ownership.

Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does NOT represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of appropriate qualified professionals prior to purchasing the Business.