May 13, 2020 — COVID-19 Impact Statement: Despite the pandemic, at the end of March 2020, year-over-year sales for Q1 were higher than in 2019. Because of the Executive Order, the retail locations had to close, however, no staff was laid off and the business quickly obtained a PPP Loan. Despite the closing of the retail locations, the Company is slowly getting back to work. Now that construction is back on, curbside paint pickup is available for contractors, and contractors can pick up lighting and flooring materials. 3 crews are out installing floor covering. Ownership is not concerned about its supply chain or short-term financial obligations, and are looking forward to a V-shaped recovery!
This profitable and established Business is an independently owned and operated commercial flooring dealer that supplies and installs to commercial flooring contractors and general contractors a wide variety of floor covering products for commercial, institutional, and educational projects. Additionally, the Company operates two distinct retail concepts serving both commercial and residential customers in the Tri-City Area of Michigan.
Much of the Company’s business is selling and installing commercial flooring to commercial flooring contractors and general contractors; however, the Company’s retail locations complement its primary source of revenue by offering parallel home improvement products. The Company’s retail brands provide various products, including paint, floor coverings, lighting supplies and products, and flooring solutions.
The Company utilizes a local advertising agency to handle most of the marketing for all the locations. This advertising agency provides the Company with better advertising “buys” and the ability to focus on current promotions and sales. Due to the Company’s excellent locations, outstanding market reputation, and expertise, it has a high percentage of repeat and referral business.
The Company is owned by two owners (50/50). One owner is a passive owner, while the other owner is involved in the oversight and operations of the Business. Additionally, this owner oversees high-level operations, makes strategic-level decisions, makes the final decision on what commercial jobs to bid on, but he does not actively manage the day-to-day operations of each location. Instead, the management staff is in place to handle most of the day-to-day operations of the Business.
After operating the Company for 40 years, the owners would like to sell the Company to pursue retirement. Critical managerial staff has been with the Company for decades, and ownership has no concerns about their continuity. Ownership is willing to stay with the Company for a transition period post-transaction to assist the purchaser’s needs.
Buyers will be required to have a minimum of $500,000, solid credit, and preferably industry experience to qualify for SBA 7a financing.
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