Is glasscraft being sold?

**gomilobster** · 03-14-2016, 12:14 PM

So I came across this link in a facebook group which also claims glasscraftinc.com URL is up for grabs...

http://www.bizbuysell.com/Business-O...I0OVlRJTNkJTNk

Does this mean Eugene glasscraft will go back to being Winship again? I am not sure if this is real or what the deal is...

**Mike_Aurelius** · 03-14-2016, 02:27 PM

From the link, BOTH locations are included in the sale. $900K for a business that grosses $4.5 mil per year sounds too good to be true, but there's this: "Current ownership has a roadmap to growth, but does not have the time nor energy to execute. Ownership would like to move quickly and is willing to sell the Company at a discount to net asset value."

**somewhere** · 03-14-2016, 03:12 PM

Originally Posted by Mike_Aurelius

From the link, BOTH locations are included in the sale. $900K for a business that grosses $4.5 mil per year sounds too good to be true, but there's this: "Current ownership has a roadmap to growth, but does not have the time nor energy to execute. Ownership would like to move quickly and is willing to sell the Company at a discount to net asset value."

Net and gross can be worlds apart.

**Greymatter Glass** · 03-14-2016, 04:28 PM

From my comments on FB:

Gross sales aren't everything. I'm in a similar situation myself (smaller company) ... burn out, opportunity costs, and uncertain markets are a huge problem everyone is facing. Also, that gross sales number may not be the most recent number, it could be a peak number. The real numbers to look at are FF&E, and inventory on hand. It's hard to say if that inventory is retail or cost based numbers tho. I'm guessing cost, but it's almost impossible to be sure. Still, with that price... I'm surprised they didn't seek private buyers already, which suggests there are things that make even the 900k price tag questionable.

I am a seller of pretty much the same things Glasscraft sells. $4.5 million in gross sales, with the margin's we've been pushed into is probably at best $1,500,000 net, out of which you have to pay 15 salaries (est $400-500k a year), taxes, fees, utilities, insurance, marketing, interest, loans outstanding (mortgage, credit lines), facilities, miscellaneous "phantom" costs, theft/pilfering... that's before the owners can get paid.... no doubt $900k is a lot of money, and $4.5m sounds GREAT... but if I broke down my numbers for you you'd think I was insane for staying in this game as long as I have. I love glass, I love glass artwork, and (most of) the artists.... but this isn't making my rich, I suspect it's the same for glasscraft

New comments:

Thinking about it, I suspect the "value" of inventory on hand is closer to retail value, since it's listed as value, not cost. There may be some magic "net asset value" formula to calculate the liquidation value, but I don't think this site is that complex for the public listing. So at any time, Glasscrafts has a bit over $550k in inventory on hand @ retail prices. What I don't know is, does that factor in value based on their current prices or list prices.

These "clubs" and races to the bottom prices pushing everyone to a thinner and thinner margin are going to end. You can't pay $50 for something, turn around and sell it for $55 at retail, and last very long.