National Retail Franchise - Adelaide S.A - EBITDA $1,296,656 (2020)

National Retail Franchise - Adelaide S.A - EBITDA $1,296,656 (2020)

AU$5,800,000.00Price

One of Australia’s blue chip Retail Franchises is now available to suitably qualified buyers.  

 

This first class retail business located in Adelaide, SA,  is one of the Frachises leading outlets. The business has been largely unaffected by the Covid-19 pandemic and continues to show strong annual growth.

 

Company Share sale of 100% shareholding of incorporated structure

 

The price of AUD $5.8 million approximates a  25%  ROI when related to  the conservatively  projected 2021 EBITDA.  

 

New favorable Franchise Agreement:   Subject to approval by the Franchisor, the new Franchisee will be issued with a new 10 year term Franchise Agreement aligned with the existing property lease, which has approximately 13 years to run.

 

Staff:    Eleven motivated and productive core staff will remain with the store.  The incumbent franchisee has been highly selective in his staff recruitment and employs above average staff.  All are highly motivated and extremely competent.   Key staff resumes will be made available to qualified buyers.

 

Floor Area:  Currently 1,120 square metres, but the effective retail merchandising area will increase to by approximately 30% with the installation of new retail efficient racking.

 

Lease Term:  The current 2 x 10 property lease term has 3 years to run on the first term with a further option of 10 years.

 

* Sales Revenue 2019/2020 $8,036,920
* Net Earnings (EBITDA 2019/2020) $1,296,656

* Estimated Stock at Cost $1,200,000  (Approximately)
* Adjusted shareholders net equity  as at 30th June 2020  $1,100,000
* Value of operational Goodwill $4,700,000
* Total Asking Price $5,800,000 includes all Stock at Cost (Approx $1.2 million)

 

A comprehensive Business Information Memorandum is available to qualified parties after completing our confidentiality agreement here

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