Listing Number: 9525-468774
Description
For over 25 years, this neighborhood music store has provided lessons, rental instruments, and offered a full line of music gear for beginners to professional musicians in Northern Virginia.
The Covid Lockdowns and extended school closures severely impacted this brick-and-mortar business's bottom line. Debt financing impacted profitability. Today, despite over $1M in gross sales, the business is not profitable due to the high cost of servicing the debt.
This may seem bleak to the novice, but to the savvy investor, this is a great opportunity: The new owner takes a deep discount by either paying off, or assuming a low interest, 30-year, SBA loan plus closing costs and fees. The seller in return discharges all personally guaranteed debt. Now the business is cash flow positive, and the business is back in the black with monthly finance payments that are a fraction of one percent of sales.
This business has been working with area schools for many years and offers students a full line of name brands including Strobel, Eastman Back, Yamaha, and Jupiter. The store has a variety of music teachers as well as repair specialists on staff, many of whom have been with the company from the start.
For intermediate and professional musicians, the store carries a wide array of name brand guitars, keyboards, percussion, amplifiers, PA gear, and all the accessories needed to perform live.
The business has an excellent POS system that tracts rentals, lessons, equipment, and instrument sales. It can provide accurate sales tax and inventory reports, and outputs to QuickBooks for accounting. An outside CPA firm provides quarterly reconciliation, payroll, and tax preparation.
The Seller would like to stay on as part-time employee making less than $22,000 due to Social Security benefit restrictions.
Listing Details
- Price: DH 683,000
- Down Payment: DH631,800
- Sellers Discretionary Earnings: DH 277,596
- Total Sales: DH 1,010,719
- Location: Withdrawn, Virginia
- Inventory: DH 500,000
- FF&E: DH 150,000
- Employees: 4
- Year Established: 1999
- Reason for Selling: Debt Restructure
- Category: Music
