Piñata Production And Sales Business

Business Overview:

Presented by West Texas Acquisitions, this piñata production and sales business has been a beloved fixture in the El Paso community for over 30 years. Known for its exceptional craftsmanship and wide range of piñatas, this business also offers a variety of candy assortments. With the owner approaching retirement, this is an extraordinary opportunity for a new owner to step into a turnkey operation that has a strong, loyal customer base across Texas and New Mexico.

The business operates from a 1,300 square feet location with a lease of $1,300 per month. It consistently generates impressive revenue, with a 2023 gross revenue of $135,250 and a net profit of $40,456 as per IRS 1040 Form. The sale includes all current inventory valued at $6,500, piñata-making supplies, equipment worth $9,250, and other assets totaling $1,530.

Ideal for someone passionate about arts and crafts or retail, this business offers low overhead costs and significant growth potential. Opportunities for expansion include enhancing online presence, broadening the product range, and increasing marketing efforts to reach a wider audience.

Value Disclosure Note (VDN): Why is This Business Priced at $87,412?
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You might be wondering, why is this business listed at $87,412? Here’s the honest answer: As business brokers, we aim to help our clients determine a fair and accurate price. We call this a Broker Opinion of Value (BOV).

For this specific piñata business in El Paso, TX, we’ve used a valuation method that reflects the high profitability and robust market presence typical in the arts and crafts/retail stores industry. As of May 30th, 2024, according to the Business Reference Guide (BRG), arts and crafts/retail stores (NAICS 4591, SIC 5085) are typically valued at 2 times their Seller’s Discretionary Earnings (SDE) plus inventory.

Here’s the breakdown:
- Industry Multiple (MVIC/SDE): 2x
- Seller’s Discretionary Earnings (SDE): $40,456
- Inventory: $6,500
- Broker Opinion of Value (BOV): 2 x $40,456 + $6,500 = $87,412

Based on this valuation method, the accurate price for this business is $87,412.

VDN was invented by West Texas Acquisitions due to our clients always wondering how we or our clients came to the valuation we have the business listed at.

For a quick response to your inquiry, please contact Roly Yazir using fill out the contact form on this page. For more information and to receive a detailed confidential opportunity summary, please use the form on this page to request more information, and the NDA will be emailed to you promptly.

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Reason for Selling:

Additional Details:

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