Full-Service Florist - TSP401

A well-established “turnkey” florist located in Central Kansas is available for purchase from the retiring sole owner within 2 years. Operating as an LLC, this full-service flower shop has been in existence since 1947 and until recently (Dec. 2022) was owned by a 2-person partnership for the last 25 years. Their professional staff and designers are true artists with a passion for designing and sharing their love of flowers and are dedicated to making their clients experience a pleasant one. Known throughout their local community as “THE” premier florist, with a 4.5 / 5-star review rating on social media, they are well-respected and recognized to bring comfort to their clients in times of grief, joy and happiness during weddings, birthdays, and other occasions. According to the owner, 90%+ of their business is repeat business ensuring that they have built up an active customer / account base of 3,200+. Open 8–5:30, Monday through Friday, and 8 to noon on Saturday they employ 5 people; including the full-time owner/operator and designer, 2 more designers – one full-time and the other part-time and, 2 part-time delivery associates. According to the owner, one designer is expected to stay on after a transition and the others would stay if a new owner required them too. Also, the owner has expressed an interest in assisting a new owner to ensure a smooth transition.

As a member of the Teleflora Network, they’re committed to offering only the finest floral arrangements backed by friendly prompt service. Belonging to Teleflora gives them website and other national marketing capabilities but it also acts as a clearing house for products, has bookkeeping capabilities and facilitates seamless credit card processing for the store. From weddings to birthdays, from just because flowers and gifts to sympathy arrangements and funeral service bouquets or wreaths, they hand-pick every stem. Since they know how special it is for their clients to send and receive flowers, all products are sourced from both local wholesalers and flower farms. In addition to offering a large inventory of fresh flowers arranged in contemporary or traditional designs, this florist also supplies plants, greeting cards, gifts (some on consignment), candles, balloons, and stuffed animals. Events covered by this floral store include Weddings, Proms, Valentine’s & Mother’s days, Funeral designs, among others. They also facilitate sending flowers to almost any location and do their best to accommodate deliveries at specific times of day.

Since the florist / legal entity owns the premises, the ~3,600 square foot floral shop and 816 square foot attached garage, housed on ±1 Acre (41,678 sq.ft.) plot of land, will ideally transfer with the business sale. However, the owner is also open to a lease or lease-to-purchase arrangement to the right buyer. Upon entering the shop from the main street, customers encounter a spectacular ±1,300 square foot show room, with high ceilings and vented skylights, which contains a reception desk and point of sale terminal, a refrigerated “cash and carry” display unit of pre-arranged flowers, among other tables and display furniture. Directly off the show room is the main ~1,000 square foot design room through an expansive opening giving customers a direct site-line to where the magic happens. Within the design room are 3 workstations and 2 computers interfaced into their Teleflora Network software. There is an “owners office” off the design area, with phone and other office equipment (fax, copier, etc.) which also has its own entry/exit doorway. Adjacent to the work area, are two rooms each ~600 square foot, one is the main or larger flower cooler space. Close by the attached garage to allow for easy delivery access, is the second large flower processing staging room containing the Teleflora server and central computer hardware. The garage has space for storage, both owned delivery vans, a 2000 Dodge Caravan and a 2017 Ford Transit each sporting attractive paint artwork of the florist, plus there is an attic for additional storage. Next to the garage is a converted greenhouse used for the storage of containers and floral supplies. A sale will include all company owned assets, equipment, supplies and a well-established client base.

Over the past five years, this florist’s sales have grown at a compound annual growth rate (CAGR) of ~3% from $465K to ~$546K in 2022, the owner believes 2023 will be similar to 2022 with estimated Sales of $550K+. Cost of goods sold are estimated ~38% of sales, in-line with industry standards (<43% of Sales). Once Sole Proprietor & partnership normalization adjustments are made to the LLC, operating profit margins are estimated to be ~7%, better than industry norms of ~5.5%. Annual discretionary cash flow earnings potentially available to a new owner (“Adjusted EBITDA”) is estimated to be 20%+ of sales ($110K+), more than enough for a new owner to service any debt and still receive a generous return on their purchase investment. The estimated value range from this florist is between $140K and $200K(or 25.4% to 36.3% of Sales in in 2023)--- excluding cash, receivables, inventory, liabilities and facilities). For illustration purposes, based on weighted averages of our analysis/method, as described in our valuation report, the estimate of value of this flower shop as of December 31, 2023, is around $170K.(Note: this is only for guidance it is not RedTire's suggested price point)