Business Overview

Oregon based outdoor recreational products manufacturer. Its products are used for a range of recreational and commercial applications throughout North America and to targeted international markets. The company designs, manufactures and sells its products through traditional distribution, Amazon and directly through online channels. Each brand is focused on offering customers superior function and value with its products. Most of the company’s products are Made in the USA.

Financial

  • Asking Price: $2,600,000
  • Cash Flow: $678,000
  • Gross Revenue: $4,683,000
  • EBITDA: N/A
  • FF&E: $200,000
  • Inventory: $350,000
  • Inventory Included: Yes
  • Established: 1993

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:11,600
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates from a single 11,600 square foot facility. The leased facility occupies roughly one half of a commercial building with excellent access to major roads and transport. The building lease runs through September 30, 2022 with an option to renew.

Is Support & Training Included:

The Seller will provide training for 2 weeks at no cost. Negotiable.

Purpose For Selling:

Seller is retiring

Pros and Cons:

The company has experienced significant supply challenges during 2021 and material costs for steel tube, aluminum and resin have increased. Industry experts are projecting that prices will moderate in 2022

Opportunities and Growth:

Currently the company is forecasting 2021 Net Sales to finish in the $4.2 - $4.5 million range. Material costs are expected to stay high through the end of the year with some moderating in 2022 and beyond. The company sees significant opportunities for growth going forward along with some key strategic decisions.

Additional Info

The business was established in 1993, making the business 29 years old.
The transaction will include inventory valued at $350,000, which is included in the listing price.

The company has 10-13 employees and is located in a building with estimated square footage of 11,600 sq ft.
The real estate is leased by the business for $9,400 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. Nonetheless, the real reason vs the one they say to you may be 2 totally different things. For instance, they might claim "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is extremely vital that you not depend absolutely on a vendor's word, yet rather, utilize the vendor's solution in conjunction with your total due diligence. This will paint a more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover things like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that earnings margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new customers? Often times, businesses have repeat clients, which form the core of their day-to-day profits. Certain aspects such as new competitors sprouting up around the area, roadway construction, and employee turn over can affect repeat consumers and adversely impact future profits. One important point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the better the chance to build a returning customer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? How might the neighborhood typical house income influence future revenue potential?