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As Valentine's Day approaches, florists across the U.S. are gearing up for one of their busiest times of the year. 

Beyond the holiday rush, the U.S. floral industry is a vibrant market with significant growth potential. From traditional brick-and-mortar flower shops to online floral services, this sector offers a bouquet of opportunities for investors and entrepreneurs alike. In this edition, we’re taking a closer look at an industry that’s rooted in tradition but constantly evolving. Let’s dive in. 🌷

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INDUSTRY BREAKDOWN

Blooming Profits: The Business of Flowers in the U.S. 🌸

The U.S. floral industry has experienced notable growth in recent years. In 2023, the market was valued at approximately $6.70 billion and is projected to grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2030. 

This growth is driven by increasing consumer interest in urban gardening and indoor plants, particularly among Millennials and Gen Z consumers who are adopting floriculture to enhance indoor air quality and aesthetics.

The floral industry has evolved far beyond the traditional brick-and-mortar flower shop. While there are still around 15,000 retail florist businesses across the U.S., the industry has expanded into e-commerce, delivery services, and floral subscriptions, making it easier than ever for consumers to send and receive flowers without stepping into a store. 🖥️

Online floral services like Fresh Sends are reshaping the industry, offering curated, Instagram-worthy bouquets delivered straight to customers’ doors with just a few clicks. These modern, digital-first brands are capitalizing on the growing demand for convenience, personalization, and high-quality floral arrangements. The rise of flower subscription services has also changed consumer habits, encouraging repeat purchases and steady revenue streams for florists who adapt to this model.

Want the full report? 💐 Dive into the trends, finances, and investment opportunities shaping the Florist Industry with the free report here.

Check out these Florist Businesses for sale:

1. Century-Long Floral Business in Corinth, MS - $300,000 

2. High Visibility Corner Flower Shop in Orange County, CA - $449,000

3. Well-Established Floral Business in Hamilton, NJ - $895,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

DEAL REVIEW

Thriving Retail Flower Shop, Greenhouse, Garden Center

This business is a turnkey operation with a loyal customer base of over 22,000, and includes property in Muskegon, MI.

Deal Facts 🔥

Green Flags 🟢

• Established Reputation (55+ Years): With a long history and a loyal customer base of 22,000+ customers, the business is well-known in the community, providing built-in brand trust and repeat sales.

• Turnkey Operation: The sale includes inventory, equipment, fixtures, two delivery vehicles, and a strong online presence, making it easy for a new owner to take over without significant additional investment.

• Growth Potential: Expansion opportunities exist in wedding services, delivery area expansion, and adding complementary products like birding supplies, offering multiple ways to increase revenue.

Red Flags 🔴

• Owner Transition Risk: As a family-owned business, customer relationships and supplier connections may be tied to the owners, requiring careful management to ensure a smooth transition.

• Competitive Market: The floral industry has several competing florists in the area, meaning continued success will require strong marketing and differentiation strategies.

• Seasonal Revenue Fluctuations: Sales may be highly dependent on peak seasons (holidays, weddings, and special events), requiring solid cash flow management to sustain slower months.

Possible deal structure: With real estate included, this deal offers solid financing potential, but uncertainty around actual cash flow vs. EBITDA requires caution. A smart approach would be 70-75% cash at closing, using a mix of down payment and bank/SBA financing, with the remaining 25-30% in seller financing or an earnout tied to verified cash flow over the next 12-24 months.

Before closing, due diligence is key—clarify owner compensation, real estate costs, and profit margins. If numbers check out, expanding into events or corporate floral services could add high-margin growth opportunities post-acquisition.

Watch Our Video Breakdown

For a more in-depth analysis, check out this video deep dive of the deal by our Founder, Morgan Tate:

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

TWEET HIGHLIGHT

Scaling a service business can feel like running on a treadmill—working harder just to stay in place. But turning a service into a product? That’s like upgrading to an escalator. 🚀 Instead of constantly trading time for money, productized services offer predictable revenue, better efficiency, and the ability to scale without cloning yourself.

If you’re running a business that relies on your time, this might be your sign to package, systematize, and scale. Because the best way to grow isn’t always doing more - it’s working smarter.💡

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. Think buying a business is like climbing Everest? It doesn’t have to be. Permanent Equity breaks it down into seven manageable steps, guiding you from finding the right opportunity to sealing the deal. Check out their guide here.

2. Why start from scratch when you can buy an existing business? In Buy Then Build, Walker Deibel makes the case for acquisition entrepreneurship and lays out strategies to identify and purchase the right business.

3. If you’re serious about buying a business but don’t know where to start, Inc. Magazine has compiled a list of the five best tools and experts to help you navigate the process. From finding the perfect match to closing the deal, these resources have you covered.

THANK YOU

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