Description

The founder and owner began by servicing the repair needs of local musicians, word quickly spread that the company could do high quality repairs at reasonable rates. Musicians often trade up for ever better instruments and the founder began exchanging and up-selling the clientele. After developing direct relationships with manufacturers the company carries the best lines that include: Conn-Selmer, Schilke, Buffet, Besson, Hans Hoyer and Gemeinhardt to name just a few. Between sales volume and financial strength, the company enjoys favorable terms with manufacturers. New product sales drive used product trades and used instruments are a significant portion of revenue, often carrying not just the wider turnover margin but additional margin derived from refurbishment.

The company rents a high quality pool of instruments to local students and is a preferred vendor for area schools. In mid-2016, the company acquired another sales and leasing operation. This boosts an already strong operation with a second location in a suitably close and affluent suburb. The acquired company was particularly strong in the annual rental market and the additional sales/leasing outlet adds repair work. The operation enjoys a significant amount of recurring revenue from heavy repeat customer base. Rental agreements require units to be returned in full working condition and this can mean obligatory repair charges. However, most customers opt for the available insurance to cover possible necessary repairs. The seller underwrites this coverage making the insurance offering a profit generator.

Annual repairs are typically nominal. The company has developed numerous customized tools for efficient repairs. Real estate is available and the seller collects steady rental income from a long-term tenant. The company carries a full-line of accessories commiserate with the instruments they sell and service. This is a turn-key operation with highly trained technicians (certified) and musicians (degreed) as sales consultants. The company has enjoyed consistent organic growth by being known for quality and value. The operation runs with minimal owner involvement, due to an unfortunate circumstance, the seller has stepped back from the business. The owner was growth minded and at one time was the essence of the operation but over the last few years has been working more “on the business, not in the business”.