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Franchised Mobility Access Equipment Retailer / Rentals NC & SC
NC & SCListing DetailsOffice ID: DME8
Status: Sold
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $1,419,500
Gross Revenue: $1,515,939
Cash Flow: $378,251
12 Month Forecast: $2,000,000
Forecasted Cash Flow: $500,000
Inventory: $96,565
Inventory Included: Yes
FF&E: $159,842
FF&E Included: Yes
Sale Price: $1,325,000
Real Estate Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:
Owner will consider a portion of seller financing to well qualified buyer.
Reason for Sale:
Owner has other business interests.
Training:
Seller will provide up to 80 hours of transition support in the first 30 days post closing. Additional transition assistance can be negotiated if desired.
OperationsYear Established: 2005
Last Acquired: 2010
Form of Ownership: LLC
Employees (full-time): 5
Employees (contractors): 2
Managers: 3
Business Hours: 8-5 M-F
Summary
Business Description:
Complete access provider including sales, rentals and construction of ramps, stair lifts, pool lifts, vertical platform lifts, wheelchair vehicle lifts and grab bars for bathrooms and automatic door openers across most of the Carolina's. Franchisees are authorized to sell, rent and install a patented ramp system. 100% private pay. No Medicare or Medicaid. The franchisor has a national contract with the Veteran's Administration. The VA pays upon project completion via credit card. A large third party administrator provides a moderate percentage of rental referrals. The company has a significant level of annual recurring revenue derived from the rental division which is comprised almost entirely from ramp rental. The majority of rental product costs are recouped after 6 months in the rental program and have an average useful life of ~20 years. Strong year over year growth 2013-1014 = 22%; 2014 - Trailing 12 months = 41%; 2014 - 2015 forecast = 46%. Asking price includes $96,565 of inventory at cost. Owner benefit is for the trailing 12 months ending 8-31-2015. Franchisor requires a $10,000 franchise transfer fee to be paid by Buyer.
Historical Summary:
The franchise was formed almost 20 years ago and now services all 48 contiguous states with a full range of access products.
Owner Qualifications:
Owner should posses general business experience including management, sales, marketing and finance or be willing to hire those skill sets. No specific medical or construction experience is required.
Competition:
Competing residential product and service providers are fragmented and vary widely by product category. There is minimal competition in the commercial space for the companies products and services. This franchise markets a patented ramp system that is viewed as a premium product.
Potential Growth:
The Carolina's owner has recently formed a construction division which is growing rapidly. The construction division focuses on providing modifications to existing commercial and residential structures for access products.
LocationType of Location: Warehouse
Lease Expires: Jul 1, 2020
Monthly Rent: $950
Square Footage: 2300
Facilities:
The business operates from a 2000 square foot warehouse location with 1700 feet of floor storage, 300 feet of loft storage and 300 feet of office space.
Last Updated: Jun 11, 2016 / 10:48 AM
Financial Information Current as of: Aug 31, 2015 / 4:42 PM
Lender Pre-Approved!
Paragon Bank