The company does nearly 200 events per year – the income
breakout is about 70% from pipe and drape rentals and
because they own all of the inventory this has a very high
margin, 30% of the business comes from planning and
coordinating sub-contractors, such as floral, AV, DJ, or catering.
Their target client is 40% Corporate Events, 35% comes from
referrals from audio visual companies, 25% comes from nonprofit events or private events such as showers and
quinceaneras. This company has been providing pipe and
drape services to produce beautiful back drops for events within
a 100-mile radius of Houston for over 20 years. The venue type
that this special event company flourishes in are at large
banquet halls or convention centers, trade shows, Gala’s and
pageant stages. The purchase comes with 2 box trucks and a
trailer used to haul all of the rental pieces, an abundant amount
of inventory such as drapery, linens and table decor and there
is almost $60K in customer deposits that will transfer over for
upcoming events. There is a core team of 6 that are well
tenured, plus they have a pool of vetted, repeat contractors that
they work with on a regular basis. The owner is selling as she is
in her 60s and entering retirement, she is happy to stay on train
and transition for one year. Additionally, she is willing to finance
10% to show her vested interest in the success of the business
moving forward.
The overhead is very low as there are only 4 storage units
which is $450/ month. Priced at $620,000, with a diverse client
base consisting of corporate entities, audiovisual companies,
fundraisers, and private events, has built a solid reputation in
the Houston area with a profit margin of 27%. A 10% down
payment of $62,000 returns $109,895 in the first year after debt
payments!