Profitable & Established Retail Music Outlets
Pretoria - Centurion businesses for sale
Leisure/Entertainment businesses for sale
Refer to Broker
About this business for saleProfitable & Established Retail Music Outlets
A well established and profitable music retail chain store has become available to market. The business has been in existence for 25 years and with the present owners for the past seventeen years.
During this period, it has become an iconic name in the music and entertainment industry for a wide range of music and related products, e.g. CD’s, DVD’s, CD wallets, gift vouchers, games and the new trendy fashion of vinyl records, etc.
It has well positioned retail stores with good visibility in either upmarket shopping centres or tourist destinations with captured international shoppers.
Outlay of the stores, décor and product presentation is of excellent quality. Each of the stores has a manager in place supported by experienced and loyal staff reporting to a small Head Office managed by one of the owners.
The reason for wanting to sell is that after many years of successfully owning and operating the business, the owners now each want to pursue their own individual business interests and opportunities.
Total stock is on average R5,500m (excl VAT) and the value of assets +/- R3,120m.
Profitability of the business is sound despite the turnover at one shop being adversely affected by major shopping centre upgrades. Major cost savings have been achieved with a 5 year renewal rental contract at a highly sought after location with an extremely high volume of feet.
Notwithstanding the current low economic activity and consumers being under severe pressure, sales are remain strong and together with the major cost saving in rental expenses, it is expected that EBPITD (Earnings before Proprietors Compensation, interest, tax and depreciation – also known as Seller’s discretionary earnings) will be +/- R3,100m for the current financial year.
This represents a good ROI of 28% against the total asking price of R10,900m (incl stock but excl VAT, if applicable).
The business has an excellent footprint and reputation with marketing and promotion mainly being undertaken by means of social media.
The owners will consider offers for individual stores and the price is negotiable for the total business being bought.