Mountain Life Gift Store
In beautiful Banff Alberta
Normalized Cash Flow: $212,206
What they do – the short version:
- Sell memories to tourists about their visit to Banff and the beautiful Rockies.
- Busy summers and lazy winters
- Great location on the busiest street in Banff
- Little to no concentration of suppliers
- Easy access for supplier deliveries
- Can expand with current displays and equipment
- Owners do their own day-to-day bookkeeping
- Good web site
- Customer feedback provided to shop about service.
- Owners planning to retire
This is a well-established gift shop located in Banff. Their prime customers are the thousands of visitors to the park through out the year. Mountain Life has been doing this for over a decade and learned a lot. But better still, they wrote it down in a procedures manual that a new owner will be able to use to ensure a smooth transition.
There are three years of full financials available for qualified buyers and up-to-date equipment list.
The reason for selling is retirement so these buyers cannot offer terms. But I am in touch with traditional lenders who may be able to help.
Mountain Life Gifts has a prime location on the busiest street in Banff. This location affords their operation a definite commercial advantage. Their shop approaches 2000 square feet in size. It is well signed, well lit, and offers easy customer access. There is also good access for deliveries. Mountain Life has a good lease that, with renewal clauses now in place, could run for another 10 years.
Mountain Life is fortunate to have little or no concentration of suppliers. Their largest supplier is less than 7 percent.
Most of the products they sell are delivered by either Canada Post or CanPar. Delivery times vary by supplier and can range from one week to six weeks. This means that inventory can be as high as $300,000 at the beginning of a season since, to be safe, they try to a have season’s supply on hand.
Staff is the two owners plus another four or so depending on the season.
Their staff needs no special training, permits or other qualifications other than being good with people.
This is a seasonal business that is very busy in the summer and slowest from November through April.
Their displays are in good condition and all equipment will be sold in good working order. Business can expand without the need for new equipment. Only their computer ever needs maintenance.
The owners do all the administration duties including the day-to-day bookkeeping plus help with customers. They currently use Sage to keep track of their books.
They are open to nine in the summers but the owners rely on their staff to handle the evening trade.
There has never been a WCB claim.
Their customer base is the tourist trade. There are repeat customers, referrals from the hotels, and simply tourists browsing looking for a keep sake or memory of their trip.
Mountain Life also maintains a good web site to draw in customers.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q Why you are selling?
Q In your words, what does the firm do?
Retails mostly Canadian made gifts, souvenirs, jewellery, art and clothing to a large number of culturally diverse visitors to Banff
Q What functions does the owner perform? What talents will the new owner have to replace when you leave?
Work on shop floor, supporting sales staff, teaching new staff, buying stock, bookkeeping, booking stock in (staff actually sku booked in product)
Q How long will you stay after the sale to help in the transition?
To be negotiated but willing to teach new owners then consult as required.
Q Can you estimate what it would cost for a competitor to start up?
$1m as many landlords require key money + fitting out + stock
Q Have the accounts receivable been purged of bad debts? (This is really a lawyer question).
Yes, no accounts receivable
Q Will you agree to a non-competition clause?
Q Who should buy this business?
Someone wanting a pleasant and vibrant business to work in (tourists make happy customers, generally), a decent income and the ability to live in Banff
Q Where do think the business has a competitive advantage?
We are different to other stores on the street, serving the same customer base, and are recommended to tourists by the hotels
Q Is there anything else you think a potential buyer might want to know?
The government has made Banff National Park access free in 2017. We expect a surge in the visitor numbers (currently over 3.8m per year)
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal
The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.