Listing ID: 66625
Business Overview
This is a great opportunity to run a well established manufacturer’s sales rep company representing a variety of specialty commercial architectural building products for interior finishes, exterior facades, and technical solutions for
commercial buildings, public transportation infrastructure, and other applications. Their major product lines are incorporated into the plans and specifications.
Established prior to the turn of the century, the company has served the greater Pacific Northwest with exclusive sale rep contracts with one of the largest commercial construction product companies and a handful of smaller companies. The business has established a strong reputation for providing high quality products and services to their customers on a consistent basis over many years.
Their customers include architects, general contractors, specialty subcontractors such as drywall, flooring, exterior facades, concrete, stairs, sheet metal and mechanical trades, and building owners.
The company averages over 1,300 orders per year and maintains a marketing database of over 2,950 customers spanning from architecture firms, construction subcontractors and buildings owners. The business currently has roughly $30 million in outstanding proposals which typically translates to $10-11M in total manufacturing goods sold or $1.0-$1.1 million in sales commissions.
Current operating hours are from 8:00 a.m. to 5:00 p.m., Monday – Friday. The owner fulfills the roles of executive management, vendor relationships and sales. He is supported by 2 full time office staff who enter and track orders, payments, account receivables, and bookkeeping.
The lead business broker at IBA for this business is Seth Rudin. Mr. Rudin can be reached directly at (425) 454-3052 or seth@ibainc.com.
Financial
- Asking Price: $1,200,000
- Cash Flow: $700,000
- Gross Revenue: $1,100,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller will provide an appropriate amount of transition training consulting to facilitate a smooth transfer of ownership.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other factors. This is why it is really essential that you not rely entirely on a vendor's word, but instead, make use of the seller's response combined with your total due diligence. This will paint an extra realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that revenue margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new consumers? Most times, companies have repeat clients, which develop the core of their everyday profits. Specific variables such as brand-new competition sprouting up around the area, road building, and staff turnover can influence repeat consumers and also negatively impact future profits. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the chance to develop a returning customer base. A final idea is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood average household income impact future earnings potential?
