Business Overview

Family-owned wholesale pastry and bread manufacturers in business for almost 30 years in NYC. Their baked goods are sold through mass distributors with end consumers being hospitals, hotels, universities, schools, corporations, pushcart and food truck operators.

The Bakery has successfully grown into a large operation working out of a leased 15,000 sq/ft location with more than 40 employees. They have extensive equipment including a large custom-built silo, walk-in ovens, freezers, refrigerators, several conveyor belt production lines and company trucks and vans.

They are known for their artisanal breads, breakfast pastries and higher-end European line of baked goods. They bake in multiple shifts to meet the demands of their commercial customers.

They suffered through Covid but never shut down and coming back to much higher sales every day. No advertising done.

Their trailing 12 months sales is 4.5mm with another 1.35mm in contracts added in gross sales as of March 2022 equating to $620k in adjusted EBITDA as of 12 months ending in March 2022.

Financial

  • Asking Price: $1,750,000
  • Cash Flow: $474,000
  • Gross Revenue: $4,500,000
  • EBITDA: $474,000
  • FF&E: $600,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1993

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:40
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

15,000 sq/ft warehouse

Is Support & Training Included:

Will provide

Purpose For Selling:

Other interests

Additional Info

The company was established in 1993, making the business 29 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell companies. However, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or an array of various other reasons. This is why it is really vital that you not rely totally on a seller's word, yet rather, utilize the seller's response combined with your general due diligence. This will repaint a much more reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new customers? Often times, businesses have repeat clients, which create the core of their daily earnings. Specific aspects such as brand-new competitors sprouting up around the area, roadway construction, and staff turnover can influence repeat clients and also negatively affect future revenues. One crucial point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the regional average home earnings impact future revenue potential?