Boutique Bash Draft IM

The Boutique Bash PREPARED BY:

Information Memorandum Listing No. ABC Business Sales Ltd Lic REA 2008

Steve Davey Business Broker ABC Business Sales 027 257 6856 steved@abcbusiness.co.nz

Statement of Passing Over Information This Information Memorandum has been compiled primarily by the collection, classification and summarisation of records, documents, representations and financial information (“Compilation”) supplied by the Vendor or the Vendor’s agents. Accordingly ABC Business Sales Limited (ABC) is merely passing over the information as supplied to us by the Vendor or the Vendor’s agents. The information herein has been sighted and approved by the Vendor.

Warning While we have compiled the Compilation from such records, documents, representations, and financial information supplied to us by our client, we cannot guarantee its accuracy and reliability and we have not checked, audited, or reviewed the records, documents, representations, and financial information and therefore to the maximum extent permitted by law neither ABC nor any of its salespersons nor employees accept any responsibility for the accuracy of the materials from which the Compilation has been prepared.

Confidentiality This Information Memorandum and all information relating to the Compilation are strictly confidential. You must not distribute, copy or disclose this Information Memorandum or any of its contents to any person (other than your professional advisers on a need to know and confidential basis) without the prior written consent of ABC Business Sales Limited. If you receive a copy of this Information Memorandum but are not an authorised recipient or a person responsible for delivering it to an authorised recipient, you must immediately return this Information Memorandum to ABC Business Sales Limited. By receiving this Information Memorandum, you irrevocably agree to these confidentiality terms and any other terms set out in this Information Memorandum. The information contained herein has been sighted and approved by the Vendor.

Information Memorandum | 2

Contents Business Overview

4

Executive Summary

5

Growth Opportunities

6

Financial Performance

7

Location and Lease

8

Summary

9

Financials

10

Photos

11

Next Steps

12

Broker Profile

13

The Loanary / Finance Link

13

Information Memorandum | 3

Business Overview The Boutique Bash is a giftware store in Ashhurst and also an online store. The owner has created a store beautifully stocked with modern products and also popular home decor ornaments and giftware. She has got to know who the customer base is and buys her products with them in mind. Ultimately she buys what she likes herself and then sells them.

The retail store is complimented by an online store. The website is vibrant and catches the audience eye where she sells clothing and a bigger range of products on here. Orders are received and dispatched from the store daily giving you a client base that extends countrywide.

From the owners marketing and word of mouth has this business with an exceptional name and great service where clients always go back to get the experience and purchase something different for their friends and/or family.

Giftsware is not going out of fashion and is driven by events that happened all year round from Christmas and Easter to birthdays and weddings etc.

A key demographic of their client base is women aged over 30 and the owner stocks goods that appeal to that specific market.

Its a fun business as you can buy what you like and customers are generally happy and excited when they find the perfect gift.

Check out their wonderful website at www.theboutiquebash.co.nz Information Memorandum | 4

Executive Summary

2023 Turnover

EBPITD

$293k

$62k

Staff

Lease

1 WO 2 CAS

TBA

Asking Price

$179k

Information Memorandum | 5

Growth Opportunities The owner has done a great job building this business to what it is today. She started it 8 years ago and built up the suppliers and has established a solid repeat client base.

The opportunities for growth are endless but a few suggestions are below: Opening more shops like one in Palmerston North Expanding the product range in store and online Additional social media marketing

Staff The owner works in the business full time and has two staff that work casually/on call when she needs them.

Hours of Operation Monday - Friday

10am - 4pm

Saturday - Sunday

10am - 4pm

Chattels Desktop Computer Camera ?

Dryer ?

Wall Units x4 Macbook Air ?

Are thes e all chat the c tels? orre More to ad ct som e to keep d or ?

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Financial Performance The owner has focused on improving the financial performance of the business in the current financial year. She has focused on margins and has some marketing activities that may have generated more sales but at less margin etc. You can see the results of this below that turnover has been fairly steady over the last 4 years and the year to date results that have been annualised suggest improved margins will contribute to a better return to the owner of approximately $95k this year.

$293k

2021

2022

2023

2024 (annualised)

Income

$242,494

$298,673

$293,721

$264,519

Gross Surplus

$103,764

$114,961

$114,047

$137,349

Gross Profit %

43%

38%

39%

52%

FY23 EBITDA

Expenses

$36,920

$46,064

$54,692

$41,534

39%

Net Profit

$6,844

$68,897

$59,355

$95,815

Other Income

$1,902

$2,073

$3,012

Depreciation

$308

$3,233

$146

$10,974

$425

$85,177

$62,938

FY23 Revenue

$62k FY23 Gross Profit Margin

Add Backs

Other EBPITDA

$69,054

$95,815

Information Memorandum | 7

Location & Lease Terms Ashhurst is a growing town that is fast becoming a suburb of Palmerston North. With lots of new houses being built the population is increasing. The town is also supported by a wider rural base particularly from the beautiful Pohangina Valley. Its a very supportive community with a great school.

Location

Boutique Bash is 160 Cambridge Avenue, Ashhurst

Lease Terms

The owners also own the property and will be happy to negotiate lease terms with the new owner.

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Summary Overall, this is a fantastic opportunity to own your own gift shop with an already established customer base and online website that generates sales nationwide.

Reason For Sale

The owner is moving to Australia with her family.

Training

The owners are happy to provide training before settlement to ensure a good handover and would be available post settlement for a period of assistance if needed.

Asking Price

Tangible Assets Intangible Assets Stock

$ 1,500 $ 127,500 $ 50,000

Asking Price

$ 179,000

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Why Buy This?

🎁 Discover Your Independence with Boutique Bash in Ashhurst, NZ! 🎁 Are you ready to step into a world of charm and celebration? Boutique Bash, a thriving gift store nestled in the heart of Ashhurst, NZ, is your golden opportunity to own a piece of enchantment!

🌟 About Boutique Bash: Established 8 years ago, Boutique Bash has become a cherished part of the community, offering a delightful array of treasures for every occasion. From birthdays and housewarmings to weddings and more, the store is a haven of unique and thoughtful gifts. With a solid foundation in both the bustling retail space and a successful online presence, Boutique Bash has cemented its status as a go-to destination for customers from near and far.

🌈 A Gem in Ashhurst: Situated just 15 minutes from Palmerston North, Ashhurst is a vibrant and growing market with a strong sense

of community. The town is surrounded by new housing developments and supported by a flourishing rural base, making Boutique Bash not only a local favorite but also a destination store for those seeking something truly special.

👩‍🎨 Empower Your Independence: Imagine the joy of owning a business that reflects your passion for beautiful, meaningful gifts.

Boutique Bash is more than just a store; it's an opportunity to embrace independence and creativity. As the proud owner, you'll be curating a collection that brings smiles to faces and adds a touch of magic to life's moments.

🎯 The Ideal Buyer: We envision the perfect buyer as a dynamic woman between the ages of 30 and 60, someone who appreciates

the art of gifting and is ready to take the reins of a well-established business. Boutique Bash is not just a store; it's a lifestyle opportunity. If you're seeking independence, creative fulfillment, and the chance to be an integral part of a thriving community, this is your moment to shine.

📈 Thriving Year-Round Business: Gifts are not seasonal – they're a year-round necessity. Boutique Bash caters to a diverse clientele for various occasions, ensuring a steady and consistent revenue stream. As the new owner, you'll be at the helm of a business with a proven track record of success.

🎀 Your Journey Begins Here: Seize the opportunity to own Boutique Bash, where each day is a celebration and every gift tells a

unique story. Don't miss your chance to be part of Ashhurst's vibrant community and the lives of countless customers who have made Boutique Bash their preferred destination.

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Financials

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Next Steps Detailed information will be provided only to parties who demonstrate a strong and genuine interest and financial capacity to proceed with this acquisition.

Confidentiality is a very high priority for most business owners. They will need to be assured that your interest is genuine before further privileged information is supplied.

The information contained in this profile has been prepared to provide you with an overview of the business to determine its suitability. You will also need to factor in your own circumstances and requirements;

Is it affordable?

Is it in the right location?

Can you run it successfully?

Does it provide the income you need?

After consideration of all the relevant details, you should be in a position to decide whether this business meets your personal criteria and you have the necessary financial resources to complete a sale. Your broker will be able to advise you in this regard and we may also be able to assist with funding if required.

To that end the sale process will involve: 1. Interview with the ABC broker, provision of further information as required/appropriate, under confidentiality agreement.

2. Introduction to the Client and inspection of business premises, if appropriate.

3. Submission and presentation of conditional offers (subject to due diligence) with a deposit payable through ABC. This will include all relevant terms and any conditions that need to be satisfied before you give your final approval. A copy of a draft agreement can be prepared as per your instructions and forwarded to your solicitor as required.

4. Negotiate the sale process and complete all necessary documentation.

5. Conclusion of due diligence by purchasers and their accountants/solicitors.

• Liaise with the lawyers and accountants for both sides as well as the landlord.

• Help to effect the completion of all terms and conditions.

6. Obtain the final sign-off to confirm the contract.

Under no circumstances may prospective purchasers make contact with management, employees, suppliers, agents, or customers without prior consent of ABC who will then seek the Authority of the Client.

Information Memorandum | 12

Expanding your Business?

WHY WORK WITH STEVE

Business Sales Experience With over 100 business sales to my name I have the experience to handle any sale. No one sells more businesses in the Manawatu than I do.

Marketing I am a multi award winning marketer with a large social media presence and expertise.

Financial Analysis Having been a business banker for several decades my financial analysis skills are first class. That’s a skill I can use to fully understand your numbers and also be able to convey them in the best way to buyers.

Buyers network I have developed a strong buyer database over many different industries. This includes SME buyers right through to Private Equity and large corporate buyers.

IN PROFILE

Trust Vendors have trusted me with over 100 business sales on their behalf with great results achieved.

“Steve has a successful track record as a business broker in Palmerston North serving the Manawatu region. His marketing expertise, approach to client services and sheer passion has seen him establish himself as the dominant player in the area. His large network of contacts, extensive financial & business experience from a range of industries, will be beneficial for both sellers and buyers.”

ABC Top Performer Group 4 Years Running

Chair of the Manawatu Business Chamber of Commerce

Manawatu Golf Club Member

ABC Business Sales Limited Licensed REA 2008

If you are starting a business, buying an existing business, or your business is highly specialised, we have the expertise you need in a finance professional.

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Cashflow Funding?

At The Loanary we understand that cashflow is the heartbeat of any good business. We also understand that a growing business often needs to borrow for cashflow assistance. We have a number of solutions for short term and long term requirements.

This could be anything from needing to purchase stock, funding an invoice, employing new staff, right through to paying tax.

We work in collaboration with you and your advisors i.e lawyers, accountants etc, ensuring that we are there to manage and provide support throughout this complex process. Some advisors simply arrange finance, at The Loanary, it is important for us to be a market leader. We therefore supervise the process of facility documentation, establishing transactional banking and the final loan settlement of the business.

Our services come at no cost to you.

Call one of us today for your free financial advice!

Buying a business is known to be stressful. Because we streamline this process and only work with motivated lenders, it means we can deliver better outcomes and more satisfied clients.

We are your financial partner in business!

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We don’t operate like the banks; we work like we are part of your business and strive to understand your aspirations, what is going to make you successful and what we need to do to make this achievable.

We specialise in: Business Acquisition

Alan Groat

Barry Mitchell

FINANCIAL ADVISOR 027 284 0158

FINANCIAL ADVISOR 021 292 8076

FINANCE LINK Working With Us: What to Expect Finding the right interest and capital structure for your business by yourself isn’t easy. That’s why the experts at Finance Link are here to work with you. Here’s what to expect when we work for you: Tell us about your business’s goals and financial circumstances We research, analyse, and recommend a funding strategy We prepare your loan application and negotiate directly withyour chosen lender We keep you updated and informed every step of the way

Finance Business Finance

www.abcbusiness.co.nz

Steve Davey Business Broker

At The Loanary, our goal is to work closely with new and existing business owners to provide financial solutions for all their needs.

Are you a new start up or looking to grow? Maybe there is a competitor you are looking to acquire?We work in collaboration with you and your advisors to ensure that we have comprehensive financial reports which best represent your business. We then deal with the right financial institution and banker to get the best deal going.

Working Capital

027 257 6856

steved@abcbusiness.co.nz www.financelink.co.nz

Aaron Brownlee

Sam Brown

Commercial Financial Advisor

Commercial Financial Advisor

M 027 589 8570

M 020 4150 5870

E aaron@financelink.co.nz

E sam@financelink.co.nz