Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

This flower shop does $1.3M in revenue a year!🌹

21 May 2023 · 1 min

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Mike Andes presents a Las Vegas flower shop for sale with stated annual revenue of $1.3M and an asserted profit of about $200K. The $1M asking price reportedly includes $400K in inventory and $300K in furniture, fixtures & equipment (FFE); Andes highlights concern that significant value is tied to tenant improvements while the lease expires in four years and advises buyers to secure lease extension options when financing (e.g., a 10-year loan).

Questions this video answers

$1.3 million per year.

About $200,000 per year.

$1,000,000 (one million dollars).

$400,000 of inventory.

$300,000 of FFE.

Chapters

This flower shop in Las Vegas for sale for a million dollars. They do $1.3 million in annual revenue, and they say they profit around $200,000 every single year. Now, in that million dollar asking price, that includes $400,000 of inventory and $300,000 of FFE or furniture, fixtures and equipment. What that means is a lot of the valuation of this company is actually wrapped up in their TI or their tenant improvements because they lease their building. And what I'm concerned about, if someone was to buy this and they were going to get a loan for 10, is that their lease is expiring in four years. I always recommend if you're buying a business, to ensure that the lease includes or at least has options to be able to extend a lease past the term of the loan. This prevents you from having an actual outstanding balance on your loan. And yet your landlord's kicking you out from a facility that you spent hundreds of thousands of dollars building out.