28M Retail Value Museum Quality Original Art for 9M, Seller Will Help

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Market Pieces-Gallery/On-Line/Domestic & International Shows
Asking Price:
$9,000,000

Gross Revenue:
 Not Disclosed
Cash Flow:
 Not Disclosed
EBITDA:
 Not Disclosed
Inventory:
$9,000,000
included in asking price

FF&E:
 Not Disclosed
included in asking price

Real Estate:
 Not Disclosed

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Business Description

$28M in HISTORICALLY IMPORTANT FINE ART Offered at $9M to either start or add to a Fine Art Gallery

15 MUSEUM QUALITY Works Ranging in Value from 8M to 250K plus almost 2000 more paintings worth between 2K and 150K each.

The Seller estimates that his entire inventory has a retail value of 28M dollars which he will offer for 9M dollars. 2000 pieces of mostly international art that are almost entirely high end oil paintings including 15 large museum quality pieces. One of the museum quality pieces the Seller has been told could be worth 8M to 10M retail on its own. It could be a featured piece in a major museum in Russia. Compare that to the value of almost every other major countries signature pieces. Russia is slowly catching up and getting the respect it deserves for its increasingly famous painters.

Seller has a warehouse with a showroom in a Mountain Resort and wants to open a Gallery in Cherry Creek but is 73 and has major family commitments in Texas so he is both retirement age and has to retire. There is the potential for a buyer to make 5M to 10M worth of “net profit” over the next 5 years off of this artwork.

The Seller has not had a retail gallery for years but has accumulated many customers over the years who still purchase from his collection. He sold almost 650K of artwork in 2017 by appointment only. This is without the sale of any of the museum quality pieces. The Seller has a list of Buyers which spans 30 plus years and many are still active. This should provide a much higher base than the 650K he is making by appointment only for a new owner that sets up or adds this to a gallery in a recurring way. Buyer should set up a location that will be able to sell much more than 650K per year and if they sell just one of the museum quality paintings each year, the revenues could easily top 2M to 2.5M each year. The current seller would love to see the new buyer be patient and sell the museum collection all to the same buyer for a minimum of 12M. Seller has recently finished cataloging the museum collection and is planning on getting them scheduled into a major museum exhibit. This should automatically increase both their value and exposure. He has acquired these pieces throughout his life and has not put them up for sale until now. They are very emotional and historical pieces of original art. To be clear, this is a business opportunity to make a lot of money through selling this art for profit. This art is historically important high end fine art that you currently can’t find in any art gallery in Colorado or the United States. He knows this art, the artists in many cases, the history, etc. If you love art and making money in what is a very fun business to own, please watch the video presentations of the art by the owner including individual videos of the museum quality paintings.

He is asking 9M for the 28M in retail value artwork which is a great deal for a buyer BUT he knows he is not going to get a check that big at a closing so he will allow the Buyer to propose a flexible structure with him carrying almost half and/or allowing some of the art to be on consignment. He prefers that a buyer buy or commit to the whole collection but will consider any offer that includes no less than ½ of his collection in any one sale. He will not split it up in smaller pieces than that unless a buyer wants to buy every piece of a specific artist(s) and then that will depend on the artist and the size of the overall sale. This will not qualify for a bank loan and he will only meet with or talk to VERY SERIOUS QUALIFIED BUYERS. He is also open to flying in for special shows for up to 2 years, potentially keeping some ownership (keep some art), and/or will offer some on consignment. The goal is to keeping a buyers up front cost to a reasonable number while he feels that he is secure in his retirement also.
The Buyer can market these pieces 3 ways: Gallery, Online, and th

About the Business

Facilities:
The seller has a warehouse with a showroom in a Mountain Resort and wants to open a Gallery in Cherry Creek.

The Seller has not had a retail location for years but has accumulated many customers over the years who still purchase from his collection. He has sold almost 500K of artwork in 2017 as of October 1, 2017 by appointment only.

He believes a 3,000 square foot location in a high traffic high end area of Denver would drive sales into the millions of dollars a year. Cherry Creek North seems like a great area for a first level Gallery on a busy block and would cost approximately 40 dollars a square foot triple net. This will have a cost of approximately 140K per year, plus the cost of two full time employees, etc. Total cost of approximately 300K per year. Plus, his assistant of 16 years who knows all of this art very well and works full time in his warehouse will consider a job offer that is partially commission based to move to Denver or wherever to work in the gallery. If the new owner wants to keep the warehouse in the Mountains open, she will stay in the Resort or split her time. Her knowledge and personality will sell these paintings. The Seller and she are both experts on each piece. Plus, he will commit to making occasional trips to do Gallery Shows so he can help with showings featuring specific art/artists and tell the history and explain how emotional, rare, and valuable this art is.
Growth & Expansion:
He believes that the Gallery should be able to generate 2M to 2.5M in revenues per year allowing the Gallery owner to add inventory over time that fits his/her personality. Just 2M in revenue will leave a nice profit for an owner every year. To put it in perspective, the 25 most valuable pieces are worth at least 12M themselves and would be featured on the walls of the Gallery helping visitors to learn and appreciate the history and quality of the art making it easier to sell the smaller pieces in the overall collection. He also believes that the Gallery owner could sell copies of the 15 paintings that belong in a museum helping to keep them together making them even more valuable as a collection that can be loaned to museums periodically. High quality copies like Lithographs and Serigraphs can sell for a very nice profit. The Buyer will not need any permissions to do this. All rights to every piece of art is owned by the Seller. A Buyer could always ensure a great start by selling only a couple of the signature museum pieces which could still be loaned back into the collection for museum shows. Museum quality art sells partially because of ego, increasing exposure and therefore increasing appreciation and value, and because they are considered historically important. Once scheduled into a museum, it should be easy to sell the whole collection at once for a very large profit.
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About the Sale

Reason For Selling:
The seller is 73 and has major family commitment in Texas so he wants to retire.
Training/Support:
He is also open to flying in for special shows for up to 2 years, potentially keeping some ownership (keep some art), and/or will offer some on consignment.
Seller Financing:
Seller will be Flexible

Listing Info

ID:
1436227
Ad Detail Views:
1297

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Business Listed by

Jeff Chapman Eisnaugle

Business Broker Colorado
License# 100054090

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