| Full Price: $950,000 | Cash Flow: $546,629 |
| Gross Revenue: $6,279,075 | After-debt service income: |
| CURRENT EBITDA: 1.74 | Amortization Period: |
| FF&E: $100,000 | Established: 1993 |
This case study describes the tale of a thirty-year-old RV business bought by a Winthrop Capital Group customer. The dealership was already earning over $6 million in revenue and had a positive cash flow of $546,629 each year. The dealership’s hidden potential was unlocked, however, with the aid of Winthrop Capital Group’s Financial Wellness Report and Offering Memorandum, resulting in a profitable sale.
Challenge:
The RV dealership was valued at 1.74 times EBITDA, making it eligible for a Financial Wellness Assessment to analyze its untapped potential for a premium sale. To reach its full potential, the company needed more sales and improved cost control.
Solution:
Winthrop Capital Group used its expertise to develop a Financial Wellness Report, showing the untapped potential for a premium sale of the business. According to the research, average earnings in the business are 10 to 12 percent of gross revenue, which boosted EBITDA to $753,489, resulting in a $206,860 rise. Winthrop Capital Group’s Offering Memorandum assisted the business in increasing its profitability and selling it for a premium.
Result:
The RV dealership was sold for more than $2.2 million, resulting in a $1.25 million profit for the owner. The success of this company demonstrates how Winthrop Capital Group can assist entrepreneurs in increasing profitability and selling their businesses at a profit.
Contact Winthrop Capital Group to learn more about their Financial Wellness Report, How to Sell for a Premium program, and other services that will assist you in meeting your financial objectives.