Business Summary:
EARN $100,000 ON $65,000 COST AS ABSENTEE OWNER & SUPERVISE FROM THE BEACH – ONE BLOCK AWAY!
Fully integrated – manufacturing (through sub-contractors), wholesale, and retail – iron works, decorative wood work furniture (rustic, painted frames) & art (one vendor is renowned Baja California artist). Busy retail during 6 month “Summer Season”: April through September. More emphasis on wholesale business during “Winter Season”: October through March. Prime Tourist Area in Rosarito Beach, Mexico.
EMPLOYEES
Owner’s family – nieces & nephews (plus manager); requires minimum of 2 – one for the financial side - handling money & books; the second for selling.
FINANCING
This is an all cash deal at the $65,000 firm price. Seller will also sell the 1,722 SF building for $212,000. This portion of the property will be leased by Seller for 5 years at $800/month, plus a 5 year option at a10% increase.
The Seller’s Discretionary Earnings (SDE) is $140,400. On the $65,000 price, the price to SDE ratio would be 0.46X.
ABSENTEE OWNERSHIP OPPORTUNITY
Seller may have an experienced operator, who ran a larger business in the same area, who would run the business for 50% of the cash flow. The operator projects income of $200,000+. This could give a $100,000 return (for the 50% share) on the $65,000 investment for an absentee owner. This would be a price to SDE ratio of 0.65 on an absentee owner basis – subject to Buyer’s approval of the joint venture manager – who would at all times be an at will employee of the Buyer.
SEASONALITY
Monthly sales $55-65K Summer – more retail; $35-45K Winter – more wholesale.
For more information, please contact Joe Gertz at (858) 945-5700.
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