Description of the business for sale
The owner of this company has undergone some serious health issues and is focused on selling the company within three months or
earlier. The company, a leading video / game rental and sales retail store operation with five outlets, operating under the Blockbuster
brand name, is located in high visibility locations in the suburbs of Atlantic City (no downtown locations) with a dominant market position.
All store locations are within 20 minutes drive and secured with mid-term leases and multiple extension options.
The company has excelled with outstanding marketing campaigns and has consistently increased its market penetration. Operationally,
each of the stores has a well-trained team with manager and assistant manager (that will continue after the transfer), making it a perfect
investment opportunity for the absentee / part-time minded owner operator. A sophisticated MIS system allows off-site store control.
After showing consistent growth in the earlier years, Blockbuster’s ill fated “No Late Fee” policy, combined with the owner’s health issues,
had resulted in a revenue decline during the past 18 months but has stabilized now at $2.8 million revenue with $440,000 SD cash flow.
Revenues are currently 10% ahead of the comparable period last year (March ‘06).
This is a very attractive investment: with only $375,000 of a buyer investment, a qualified buyer can obtain an annual $440,000 sellers
discretionary cash flow (before debt service), or a Return On Down Payment of 75% after debt service, recuperating his funds within eight
months – with a proven track record for significant upside potential!
The owner is very motivated in making this an easy ownership transfer and will assist in all aspects of the transfer.
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Description of the facilities
Furniture, fixtures, and equipment = 550000
Furniture, fixtures, and equipment included: Y
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