Satellite Communications System & Consumer Electronics Retailer
Location: Arkansas
Industry: Retail Stores > Electronic Equipment Retailing
Financials
Gross Revenue: $1,472,000
Cash Flow: $260,000
Business Summary
The Company was founded in 1978 as an Audio-Video Entertainment Center. It was acquired by its current owners in 1998. The owners added the new wireless product lines to following that rapidly growing market. It marketed through its Consumer Electric Retail outlet, and in 1998 & 2000 expanded into two more locations to take advantage of the synergies of marketing these related products. In 2001 & 2003 these stores were successfully affiliated with a national franchise to better their product availability and reputation. Stores are not geographically far apart and can act in support of each other. There are several nearby potential markets that could be expanded into. The revenue mix is 61% Wireless, 25% Satellite, 12% Consumer Electronics, and 2% Misc. Geographic Market Mix is about 50% Main Store and 25% each for the other two stores.
• Sales in 2003 & 2004 were abnormally high due to an unsustainable economic bubble, however 2005 stabilized to more normal conditions, and 2006 is projected as “real-growth” year showing good year-to-date numbers
• (28+ years) reputation for quality products and extraordinary customer service
• The Company carries Brand Name Products through proprietary license and franchise agreements
• There exists a myriad of opportunities for The Company to significantly increase revenues and profits, including leveraging the Company’s proven reputation to expand into neighboring markets. These opportunities are easily attainable given the appropriate investments in capital and human resources
• Minimal capital expenditure requirements are needed to maintain the Company; further growth will obviously require capital expenditures
• Industry analysts project continuous growth for the satellite communications industry as well as consumer electronics retailing
• The Company’s gross profit percentage is well above industry standards
• The principals are willing to stay through the transition and all key employees will be available to remain with the new ownership after acquisition
• Sales in 2003 & 2004 were abnormally high due to an unsustainable economic bubble, however 2005 stabilized to more normal conditions, and 2006 is projected as “real-growth” year showing good year-to-date numbers
• (28+ years) reputation for quality products and extraordinary customer service
• The Company carries Brand Name Products through proprietary license and franchise agreements
• There exists a myriad of opportunities for The Company to significantly increase revenues and profits, including leveraging the Company’s proven reputation to expand into neighboring markets. These opportunities are easily attainable given the appropriate investments in capital and human resources
• Minimal capital expenditure requirements are needed to maintain the Company; further growth will obviously require capital expenditures
• Industry analysts project continuous growth for the satellite communications industry as well as consumer electronics retailing
• The Company’s gross profit percentage is well above industry standards
• The principals are willing to stay through the transition and all key employees will be available to remain with the new ownership after acquisition
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