SPA, HEARTH & POOL – RETAIL, SERVICES & INSTALLATION
$4,500,000
BUSINESS ACTIVITY: The Company is a retailer that sells hot tubs, fireplaces, pools, chemicals, and other associated product lines to retail customers. In addition to the Company’s product line, the Company employs a group of tier one technicians who service and install all products they sell.
HISTORY: The Company began over 40 years ago and has grown to several locations in Portland Metro, as well as having a highly regarded service & installation department, which is a unique competitive advantage.
When the current owners purchased the business, it had reached $4.6M in sales. While the new owners had anticipated a modest increase to the flat sales projections, the 2008 housing crisis and subsequent recession proved hard on the industry, causing sales to drop. Hard work, perseverance, and a renewed focus on core products and services enabled the business to survive the unexpected downturn. Finally, when the recession was over, the industry and local markets began to rebound with positive expectations for the future.
As the economy bounced back, the Owners continued to grow the business by hiring additional key and quality employees, investing in further employee training and retention programs, enhancing product mix, increasing their margins, and remodeling their showrooms and service department. These investments only served to improve upon the company’s existing commitment to providing first-rate customer service and a comfortable, supportive, and fulfilling work environment for their employees. As a result of these and other changes, the Company has enjoyed 10 years of sustained growth.
The Hearth products became a strategic focus for the Company with the inclusion of a greater variety of wood, pellet, and gas stoves, including both burning and static models within their showrooms. The spa, pool and hearth offering afford the company an economic balance throughout the year given the complimentary seasonality of each of the product groups. The product mix, exceptional sales& service staff supported by strategic locations in a large four county area provide a competitive advantage in serving this growing market.
Today the Company is busier than ever. As one of the most highly respected hot tubs, pool, stove, and fireplace sales and service providers in the Portland Metro area, they continue to grow an already substantial customer base through strategic advertising and positive word of mouth. Their service and installation have been booked out for 4-6 weeks consistently and their sales team continues to provide excellent service to new and existing customers alike. The Owners are extremely proud of what they have built and the foundation they’ve laid for a new owner to build upon. It’s clear that with a strong industry outlook and a virtually recession-proof service division, the Company is poised for continued growth and sustained profitability.
SALES AND SELLER’S DISCRETIONARY CASH FLOW:
MARKETING STRATEGY: The Company has developed a yearly advertising calendar that includes all medias. They have relied on their reputation, referrals, repeat business, word of mouth, print advertising, radio advertising, television advertising, home shows, fairs, and a robust and detailed website to grow their sales. A new owner with new energy could increase the work force and expand the existing services to grow the business even further.
FURNITURE, FIXTURES, VEHICLES & EQUIPMENT: Included in the purchase price is Inventory ($1,500,000), Vehicles and Trailers ($100,000.00), Office FFE ($30,000), and Shop FFE ($10,000). The FF&E has been re-casted to reflect an estimate to replace the assets with the same or similar assets in the used marketplace.
EMPLOYEES: The Company currently employs 27 full-time employees, including the Operations Manager, Store Managers, and Service Manager. They have a well-trained employee base with decades of industry experience.
FACILITIES: The business has several locations in the Portland Metro area. The minimum showroom space for each location is 2,500 sq. ft., with ample parking and warehouse space. Each of the stores has a long-term lease in place with options to renew. The individual landlords are aware of the sale and will write a new lease for a qualified buyer.
REASON FOR SALE: The Owners are wanting to retire and to take advantage of their health to travel and spend time with family and friends.
TERMS: The asking price is $4,500,000. This is an SBA transaction with Buyer’s cash infusion of $450,000 and Commercial lending of $4,050,000 plus SBA fees. The term of the SBA loan is for 10 years at an interest rate of 6.25% with payments of approximately $45,473 per month. The business has been SBA pre-qualified.
Directions: Contact Bill Billingsley for more information at (503) 233-8600, Extension 1 or e-mail billb@thecbbgroup.com.
No additional information will be released until the buyer has been pre-qualified by the Broker.
NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN