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Hawaii Wedding Décor Rental

Hawaii Wedding Decor Rental business for sale

EXECUTIVE SUMMARY

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 major island 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 1/31/2024 they had a contracted future event backlog, with deposits, of $344,932 for events in 2024 and 2025.

 

INVESTMENT HIGHLIGHTS

  • Over 15 years providing excellent service to their market.

  • 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.

  • Low cost and centrally located warehouse/office facility in a brand new (summer 2023) highly productive facility so they can easily provide excellent service to the major venues where luxury weddings are held.

  • Hawaii is a highly desired location for destination weddings.

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

  • Fairly easy to operate the business.

  • In summer of 2023 they moved into a new, 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 basis with all the needed tangible and intangible assets, including the owners providing a 5-year non-competition agreement, two weeks of buyer training, and in addition they will provide 50% of the then outstanding customer deposits at Closing to the buyer as a credit to the sales price.  As of 1/31/2024 these deposits totaled $172,466, which would have been a $86,233 purchase credit to a buyer on a transaction that closed on that date.

 

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.

 

 

COMPANY

Listing ID:  HI Wedding Decor

Location: Hawaii, Island Confidential

Type of Entity:  Corporation

Years Established: over 14 years

Industry or Business Category: Rentals

 

FINANCIAL SUMMARY

     2023, Tax Return Data

Revenue: $812,337

SDE: $251,185

 

OFFERING SUMMARY

Asking Price:  $725,000, with 50% customer deposit price credit to the buyer.

No Inventory of goods for sale.  All rental items are considered other tangible assets.

Tangible Assets (F,F&E):  An estimated $245,000 of rental items, furniture & fixtures, warehouse items and vehicles are included.  All rental items at Closing to be included in the sale.

Non-Compete:  5 years

Training:  Two (2) weeks

Sale Reason:  Moving to mainland to be near family.

 

LOCATION DETAILS

Status: Leased, new location beginning August 2023.

Sq. Ft.: 2,955

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

Lease Expiration Date: 5/31/2029

Renewal options: None, but they expect the landlord would be happy to renew.

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

 

CUSTOMERS

90% of their customers are getting married and about 60% of these wedding customers are visitors to Hawaii.

 

EMPLOYEES

15, excluding the owners.

 

COMPETITION & Pros and Cons of Business

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.

  • There is a need in the market for rentals including a large variety of chairs, linen, lounge furniture, bar fronts & stands, dishware, tents, tent draping and lighting.The easiest expansion would be to purchase more specialty linen, chairs, dishware, and lounge furniture.

  • Marketing to and operating in other Hawaii islands.

 

TRADING DAYS/HOURS

Office:

Monday -Thursday 8:00am - 4:00pm

Friday - 8:00am - 3:00pm

Warehouse:

Sunday- Thursday 8:00am - 4:00pm

Friday - 7:00am - 3:00pm

 

LICENSING REQUIREMENTS

No special licensing or permitting required.

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