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Event Planning & Production with Large Inventory



  • Price

  • Cash Flow

  • Revenue

  • Location

  • Inventory

  • Equipment

  • Service Area

  • Employees
    30 crew members (1099 subcontractors with a good core of 6 regulars)

  • Reason for Sale
    Retirement planning

Producing and planning creative events for over 15 years in the Houston area, this successful business is ready for your vision. From large scale public events to weddings, this company has a retail inventory that can accommodate over 150 events each year.  More than half of clients come specifically for pipe and drape rentals, and the sellers have maintained a huge selection of styles and colors to assist with any event.

Roughly 30 subcontractors are in place to help with setting up décor and equipment, and the sellers consistently rely on a good group of 6 to 10 regular crew members. Services are split 10% planning, 40% production and 50% rentals, with around 30% of clients needing help with décor, sound, lighting and more. While the company can accommodate some staging, sound and lighting for smaller events, these services are generally outsourced to one of 10 strategic partners.

A buyer would need to have storage space ready to accommodate the inventory, but as the sellers do keep more inventory than is necessary for success, a space of about 2,500 sq. ft. should suffice. With a good name and strong relationships in place, this is an excellent business to grow through increased marketing and partner alliances.


Business Highlights

  • Years in Business: 15
  • Location and Service Area: Houston
  • Services: 10% planning / 40% production / 50% rentals
  • Clients: 40% Corporate, 35% A/V partners, the remaining are fundraisers, private events, etc.
  • Events: 150 – 175 events per year; 30% of events need services from planning through to set up of sound, lighting and décor (sound and lighting are outsourced)
  • Building: Storage space for inventory is needed
  • Reason for Selling: Retirement
  • Employees: 30 crew members (1099 subcontractors with a good core of 6 regulars)
  • Seller Training Period: 90 days
  • Growth Opportunities: Increase marketing & sales, especially outside of Houston. Do tradeshows and network with chambers of commerce. Work closely with caterers for referral business.
  • Current Owner’s Responsibilities: Sales, scheduling, site surveys, show management

Financial Highlights

  • List Price: $489,000
  • 2017 Gross Sales: $728,448
  • 2016 Gross Sales: $792,203
  • 2017 Cash Flow: $251,576
  • 2016 Cash Flow: $141,154
  • 35% Profit Margin
  • Business Assets
    • Equipment: $125,000 in stage sets
    • Intangible Assets: Reputation, industry contacts
    • Inventory: $661,617 in drapery and hardware (the sellers maintain more inventory than is needed)

*amounts may vary

Cash Flow Analysis

Description of Financial StatementTax ReturnTax ReturnTax ReturnNotes
GROSS SALES$792,203$899,493$828,518
Net Income Shown on Financial Statement$13,047$9,269$18,164
Compensation to Owner 1$39,992$39,446$11,538
Compensation to Owner 2$28,169$25,000$0
11% Tax on total W2 Salaries$7,498$7,089$1,269
Interest$3,537$3,695$3,222Non-onward going expense
Depreciation$2,075$2,076$336Non-cash item
Contributions/Donations$1,450$937$1,088Non-onward going expense
Meals & Entertainment$6,811$3,707$6,485Personal expenses
Auto-Personal Use$8,992$16,818$21,84465% personal expenses
Travel$1,850$2,880$1,36465% personal expenses
Medical Reimbursement$3,460$11,268$3,867Personal expenses
Personal Cell Phone$3,240$3,240$3,2403 lines at $270/month
Personal Insurance$21,033$21,033$21,033Expenses run through the business
TOTAL ADDBACKS$128,107$137,189$75,286
Seller's Cash Flow = Total Addbacks + Net Income$141,154$146,458$93,450
Profit Margin17.82 %16.28 %11.28 %
  • 35% profit margin in 2017


Services are split 10% planning, 40% production, and 50% rentals. Additionally, 30% are turnkey events requiring all aspects from linens and drapery to staging, décor, themed sets, lighting, sound and catering.

  • Events planning
  • Staging
  • Décor
  • Pipe & drape
  • On-site show management
  • Set design & construction

For clients needing audio/visual and lighting services, the company outsources to one of 10 strategic partners. Outsourced services are then marked up around 30%.

  • Audio/Visual specialists
  • Hotels
  • Tent companies
  • Party rental companies
  • Other event planners that specialize in planning only


For some events and regular clients, specialized décor is created. These include custom backdrops, tables, chair, linens, and center pieces.

  • 50% of clients require custom work
  • 75% of this custom work is kept by the company for possible reuse down the line


  • The sellers have a list of 30 subcontractors to assist with setting up events
    • Pick/pull drapery, put it up at event and take it down
    • Clean, fold and restock shelves
  • From this list, between 6 to 10 subcontractors make up a good core that the sellers rely on for many events
  • Most of the crew have 5+ years of experience
  • Pay ranges from $15/hour to $19/hour
  • 2 of the subcontractors spend 4 to 5 days per week (for a few hours at a time) maintaining the inventory
    • Cleaning inventory, folding inventory, storing inventory, etc.

Sellers split their duties as follows:

  • Seller 1 handles sales, scheduling, design and show management
  • Seller 2 handles site surveys, builds custom sets/stages and handles other duties as needed


  • Clients are 40% commercial and 35% strategic partners
    • The remainder are non-profits or consumers
    • Strategic partners are the “bread and butter” of business, acting as clients one day and vendors the next
  • 40 – 75 events per year
  • Many steady clients are people in the industry, including venues
  • The core of business comes from pipe and drape needs
  • Company handles décor for many pageants


Corporate events Conventions Pageants
Festivals Banquets Fundraisers
Fashion shows Private parties Weddings


While the company does some weddings, most clients are corporate, government or non-profit organizations.


Drapery - $587,975
Velour Penne Duvatyne
Supervel Backdrops Scrim
Slit drape Banjo Fixed covers
Chiffon Bubble Columns


Hardware - $45,337    
Staging Uprights Bases
Crossbars Base weights
Linens - $28,305
Table cloths Chair covers Chair ties
Chair bands Linen

Various themed designs & custom structures - $125,000


*The full list of assets is available upon a signed Non-Disclosure Agreement

Growth Opportunities

  • Marketing and sales
    • While the company is known in Houston, more exposure outside of Houston would drive sales
      • Equipment/drapery can be shipped, delivered and installed outside of Houston
      • Affiliates in other areas can assist in sales and setting up for events
  • Networking
    • Reaching clients in other cities/states requires reaching out to and working with affiliates and strategic partners elsewhere
    • The sellers have worked on events in other cities due to contacts, but have focused mostly on Houston and the state of Texas
  • Build relationships with venues, chambers, caterers, florists and industry peers for referrals
  • Attend trade shows and other networking events

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business.  The formula used is as follows:

Cash Flow       x          Multiplier          =          Price

Cash Flow is the sum of net income plus any owner perks and non-onward going expenses.

Multiplier is a prescribed number between 1 and 5 determined by a 100-point, 20-question rating system used to determine the business valuation (average is 3).

The Cash Flow for 2017 is $251,576. The prescribed multiplier is 1.95.

With this information, the computation result follows:

$251,576         x          1.95     =          $490,573

The List Price for the business is set at $489,000.

Funding Example

Purchase Price:                       $489,000

10%Buyer Down Payment:     $48,900

10%Seller Financing:               $48,900

80%Bank Loan:                      $391,200

Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $912.

Bank Loan 7-year term at a rate of 6% equals a monthly loan payment of $5,715.

After business expenses and annual loan payments of $79,518, a buyer would retain a net operating income (profit) of $172,058.  A 10% down payment of $48,900 results in a 351% return on investment in the first year!

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $489,000 with the terms listed above, the coverage ratio is 3.16. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2017 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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