Business Overview

Company is a 9-year-old well-established, niche B2B business delivering same day and overnight small packages to eye care providers, dentists and orthodontists in the Texas regions of Dallas-Fort Worth, Austin, Houston and San Antonio areas. Business is steady year round and recession-resistant. The customer base depends on the business for their daily shipments to/from essentially the same, repeat destinations. The company is Dallas-based with a self-storage warehouse office in Houston and delivery agents in Austin and San Antonio.
Customers are optical and dental laboratories, manufacturers and suppliers. The company collects small packages from the laboratories and delivers them to eyecare providers (doctor’s offices) and dental care providers in the Dallas-Fort Worth, Houston, Austin and San Antonio greater metropolitan areas. The largest customers are typically under contract for 2-3 year terms depending on the lab. All customers typically pay within net 30 days terms. The seller states that the business has excellent matching books & records and that they can prove all sales, expenses and income. 2021 Sales are approximately 9% ahead of 2020.
Customers are typically invoiced by number of stops (versus delivery tickets). The seller estimates the following typical numbers of pickup points in their 4 primary regions: a. DFW – DFW, Denton, Desoto, McKinney, Rockwall = 100’s of pickup points, b. Houston (includes Galveston, Richmond) = 100’s of pickup points, c. Austin, d. San Antonio
The business operates with approximately 25 full-time and 2 part-time contract owner/operator drivers. The owner works directly in the business and is “hands-on” in every aspect of the business including invoicing, payables, sales and some operations.
The top 10 customers are typically 83-85% of annual sales. Customers are happy with the service and committed to using the company primarily due to 1) quality of service, 2) rate structure, 3) responsiveness and flexibility, 4) small and local business ownership. The owner feels that he can be replaced by a hard-working owner who is dedicated to the company. The current delivery route system is well-established and can readily add additional business at minimal additional expense. A new, energetic owner can further increase sales & profits in many ways: 1) leveraging the current delivery route system and add complementary customers, 2) marketing to existing dental/optical labs, manufacturers and suppliers, 3) adding drivers.
Purchase Price: The asking price for the assets of the business is $1,330,000 with $260,000 CASH down payment and balance financed as an SBA7(a) loan. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. All financing is to be personally guaranteed. Seller prefers to sell for ALL-CASH. The assets include Accounts Receivables valued at $75,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $42,000. The price will be adjusted for actual accounts receivables as of the sale date.
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Financial

  • Asking Price: $1,330,000
  • Cash Flow: $343,644
  • Gross Revenue: $1,975,531
  • EBITDA: $343,644
  • FF&E: $42,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business occupies approximately 1,923+/- SF office space in an upscale industrial/office location in DFW. The current 36-month lease term expires approximately July 30, 2022 and leased for $2,962.50/mo including electricity/water (plus internet/phones of approximately $400/mo). The owner estimates that approximately 90% of the space is utilized. Seller believes that landlord is willing to offer a long-term lease and renewals to a qualified purchaser. Additionally, a self-storage warehouse/office in Houston is leased month to month.

Is Support & Training Included:

Seller will train buyer for 6 weeks included with the purchase price. Seller is willing to provide additional training or support at mutually agreed compensation for up to 3 months.

Purpose For Selling:

Retirement

Pros and Cons:

The business attracts customers from the major metro areas in Texas. The owner feels that the industry is very competitive with UPS, FedEx and LSO/Lone Star Overnight being the largest competitors. However, most companies do not specialize in the dental and optical industries and cannot provide the service/price point provided by this business. Despite the presence of competitors, the business has continued to thrive and can further grow with marketing and adding drivers.

Opportunities and Growth:

The seller’s primary marketing strategy is by referral or sales efforts by the owner, to laboratories, manufacturers or suppliers in the optical/dental industries who need a reliable locally based courier/delivery service. The business obtains leads by referral from existing customers and the internet. The customer base depends on the business for their daily shipments to/from essentially the same, repeat destinations. The current delivery route system is well-established and can readily add additional business at minimal additional expense. A new, energetic owner can further increase sales & profits in many ways: 1) leveraging the current delivery route system and adding complementary customers, 2) marketing to existing dental/optical labs, manufacturers and suppliers, 3) adding drivers.

Additional Info

The business was founded in 2012, making the business 10 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell operating businesses. However, the genuine factor vs the one they say to you may be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of various other factors. This is why it is very vital that you not depend totally on a vendor's word, yet instead, use the vendor's answer together with your overall due diligence. This will repaint a more reasonable picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that revenue margins are too tight. Lots of companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be met or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract new consumers? Often times, businesses have repeat customers, which form the core of their daily earnings. Particular elements such as brand-new competitors sprouting up around the location, road building, as well as staff turnover can impact repeat customers and also negatively affect future earnings. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the higher the chance to construct a returning client base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Just how might the local typical household income effect future earnings potential?