Hawaii Wedding Décor Rental Low Down Payment

Business Overview:

UNDER CONTRACT

A qualified buyer can purchase this business with a cash downpayment of less than $85,000 (plus other closing costs) and obtain an SBA loan.[Please see the details discussed below in the Confidential Business Profile].

The Company provides luxury decor rentals, creating beautiful and elegant weddings and other event settings on one of Hawaii’s tropical paradise islands. The rentals include a wide assortment of table linens, chairs, chair covers, draping, lighting, and other related accessories. The rentals offered are for customers desiring a refined and elevated feel for their weddings or other events. Weddings are over 90% of their event sales and about 60% of their wedding clients are visitors to Hawaii.Hawaii is one of America’s top destination wedding locations.The Company is long tenured and well established in the lucrative wedding market on the island, and they are known for providing excellent customer service, quality products, reliability, and timely execution on the day of the event. The Business is on the preferred vendors list for all of the island’s major hotels, which are major wedding venues in Hawaii.

They have a large investment of rental and décor items (items like specialty linens, chairs, chair covers, etc.), plus all of the other tangible assets (furniture, vehicles, etc.) and intangible assets (trade name, website, customer contracts, etc.) which are included in the transaction.

Their sales have grown over 66% from $488,000 in 2016 to $812,000 in 2023.In 2023, these sales generated $239,580 of owner’s profits (“SDE”). They survived Covid and are now stronger than before.

They receive a 50% non-refundable customer deposit for all events and the 50% balance due is paid two weeks before the event date.This results in them having a large negative working capital balance (e.g., a negative $166,488 working capital balance as of 12/31/2023).

Their sales process is very effective with a “success hit rate” on quotes of over 82% over the last 3 years.

They book events up to one to two years in advance.They maintain a strong backlog of contracted events.For example, as of 4/30/24 they had a contracted future event backlog, with 50% non-refundable deposits, of $425,422 for 193 events booked out to July 2025.As of 4/30/24 bookings are 18% ahead of last year.

Pre-qualified for a ten-year SBA 7(a) loan.Qualified buyers can purchase this business for less than $85,000 down.

INVESTMENT HIGHLIGHTS

•  Over 15 years providing excellent service to their market and building a great brand name.

•  The Company is well established and has an excellent reputation among venues, wedding planners, and brides.

•  Good historical sales growth and a highly profitable business.

•  Hawaii is a highly desired location for destination weddings.

•  Destination wedding brides like to have local professionals assist with the event.

•  Easy and fun business to operate.

•  In summer of 2023 they moved into a new, low cost, larger, more productive and more attractive facility and have a signed lease through May 2029 which will be assigned to the buyer.

•  Excellent long tenured sales and operations team.

The business is being offered for sale on a fully turnkey basiswith all the needed tangible (including vehicles) and intangible assets, including the owners providing a 5-year non-competition agreement, two weeks of buyer training, and in addition the sellers will provide 50% of the then outstanding customer deposits at Closing to the buyer as a credit to the sales price.As of 4/30/24, these deposits totaled $216,208.

Offered fully turnkey.To receive our detailed 80+ page Confidential Profile for this fun and easy to operate business which includes tax return based financial details please contact Hawaii Business Sales.

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Property Features and Assets:

Status: Leased, new location beginning August 2023.

Square Feet.: 2,955

Current Monthly Rent: $5,406 including CAM and HI GET; $64,872 per year; and $1.83 per square feet/month.

Lease Expiration Date: 5/31/2029

Located close to customers and includes full warehousing and office facilities.

Market Competition and Expansion:

CUSTOMERS 90% of their customers are getting married and about 60% of these wedding customers are visitors to Hawaii. They have minimal competition in the market, and they differentiate themselves from the competition with excellent customer service from time of inquiry to the day of event execution, timely communication, on time for set ups & breakdowns on the day of the event, high quality products. They compete on price, service, date availability & product availability. EXPANSION OPPORTUNITIES Expand marketing and add the resources to take on more events and expand the rental offerings. They are turning down events now. To take on more events, they will need more employees to be hired to prepare items during the week and more employees would need to be hired for event execution on the day of the event (mostly weekends). There would not be a need to add more sales support.

Reason for Selling:

Additional Details:

Documents:

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