Interior Architecture & Design in Tennessee
Located in dynamic Nashville, Tennessee, this architecture and design firm has an extraordinary reputation for quality services, an impressive list of repeat clients, and a niche focus that distinguishes it from others in the region. Recognized for developing and implementing a customized approach tailored to each client’s culture, style and corporate brand, a full-service project management process can include pre-design programming, site acquisition/feasibility consultation, architecture and interior design, space planning, systems integration, furnishings and equipment procurement management and project management services.
New construction build-outs, additions, renovations, and adaptive reuse projects have been completed on projects ranging in size from 2,500 sq. ft. to 300,000 sq. ft., and with construction budgets up to $78 million. At any given time, an experienced design team may focus on as many as ten projects in a week. An active project base of to 20+ is typical. Six FT and two PT staff include a Studio Manager, Interior Designers, Architects, and a Codes Specialist with operations and project management responsibilities well defined.
Presently, there are 18 projects in the pipeline continuing through 2018, with some projected to last into 2021. In addition to the firm’s niche focus, services are also provided to the healthcare, retail and educational market segments and further expansion in these areas would provide even more growth potential. Although the firm has a strong presence in the Nashville region, services have also been provided in New York, Georgia, Florida, the Carolinas, Texas, Kansas, Colorado, Nevada, Virginia and others for clients primarily based in Nashville.
- Years in Business: 12
- Location: Nashville
- Service Area: Primarily Nashville, but will go where clients have offices. Staff maintains professional registration in 8 states.
- Concentration: Corporate office and hospitality design, and adaptive reuse
- Projects: 2,500 sq. ft. to 250,000 sq. ft. with values up to $78M. Average project is 25,000 – 50,000 sq. ft. in size.
- Employees: 6 FT, 2 PT: 1 Studio Manager, 3 Interior Designers, 1 PT Project Architect, 1 FT Project Manager (able to test for license), 1 PT Project Manager, 1 Operations Manager
- Growth Opportunities: Nashville is booming, with building permits issued and the value of construction breaking records in each of the past several years, there is huge expansion potential in all areas.
- Current Owner’s Responsibilities: Principal Architect. Will stay on board as needed.
- List Price: $3,978,000
- Gross Sales:
- 2017 - $3,447,039
- 2016 - $3,071,777
- 2015 - $2,689,280
- 2014 - $2,041,139
- Cash Flow:
- 2017 - $1,045,383
- 2016 - $983,595
- 2015 - $954,960
- Profit Margin: 30%
- Assets Included in Purchase:
- Equipment - $140,671 in furniture, fixtures, drafting software, and more
- A/R - $401,486
- Projects – 18 upcoming projects, with some lasting into 2021
- Interior Architecture
- Interior Design
- Pre-design programming and master planning
- Space Planning
- Systems Integration
- Furniture design and selection
- Project Management
Client Concentration & Projects
- Corporate office and hospitality design, and adaptive reuse
- New business primarily is generated by referrals from local hospitality developer and real estate brokers
- Adaptive reuse for hospitality and corporate healthcare clients
- Firm works with a local developer in town that refers a lot of hospitality projects
- Clients are mostly in Nashville, but the company has completed projects wherever clients have offices:
- Kansas City, Charlotte, Florida, Las Vegas, Virginia, and Texas
- Projects range in size from 2,500 sq. ft. to 250,000 sq. ft.
- The average project is between 25,000 – 50,000 sq. ft.
- Firm focuses on 10 projects each week
- Weekly active projects are between 25 – 30
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$37,609||$-45,758||$51,225||$-6,705|
|Compensation to Owner||$1,149,828||$1,154,793||$1,041,828||$770,878|
|Interest||$0||$0||$0||$35||Non-onward going expense|
|Non-Business Telephone||$2,027||$2,027||$2,027||$2,027||2 personal lines at $168.94/mo|
|Health Insurance Premiums||$6,084||$6,084||$6,084||$6,084||$507/month|
|401K for Owner||$24,000||$27,925||$12,733||$15,386||Paid to owner|
|Auto-Personal Use||$835||$1,575||$1,037||$1,971||70% of auto use is personal|
|Gifts||$0||$43||$0||$186||Non-onward going expense|
|Wage||$-175,000||$-175,000||$-175,000||$-175,000||To replace Architect|
|Seller's Cash Flow = Total Addbacks + Net Income||$1,045,383||$983,595||$954,960||$645,726|
|Profit Margin||30.33 %||32.02 %||35.50 %||31.64 %|
- Cash Flow has increased by 9.5% since 2015
- Wage addback reflects the cost for replacing the seller (Principal Architect)
- Studio Manager
- Interior Designer, NCIDQ, IIDA
- Second in command
- Internal team management and consultant coordination
- Client management
- Project Manager
- Associate AIA
- Architectural intern (currently testing for licensure)
- Project management on a range of project sizes
- Client management
- 3 Interior Designers, all Associate AIA; staff specialization includes:
- Furniture, signage and artwork coordination
- Revit skills and assists in compiling architectural drawing coordination with project engineers
- Flexible skills and ability to work on multiple types of assignments
- Operations Manager
- Oversees office operations
- 11 years’ experience
- Project Manager
- Registered architect (works remotely), LEED AP
- Skilled in space planning, design integrations and specialized interior architecture and corporate branding
- Project Architect
- Registered architect, (works remotely) LEED AP
- Quality control and code research focus
Seller is the firm’s Principal Architect, and handles strategic and client management.
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 3-year average Cash Flow for 2015, 2016, & 2017 is $994,646. The prescribed multiplier is 4.
With this information, the computation result follows:
$994,646 x 4 = $3,978,584
The List Price for the business is set at $3,978,000
Purchase Price: $3,978,000
15%Buyer Down Payment: $596,700
15%Seller Financing: $596,700
70%Bank Loan: $2,784,600
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $11,124
Bank Loan 7-year term at a rate of 5.5% equals a monthly loan payment of $40,015.
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.
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: $
|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.
2016 Tax Return Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2016 Tax Return Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: