Business Overview

Private owned, world-class Import & Manufacturing Corporation. Started in the early 1990’s. This company extrudes and manufactures polypropylene and polyethylene bags with specialized filter membranes that are heat bonded to the appropriate bags produced.
Lots of IP tied not only to the product but the manufacturing process as well. They operate in a 25+ thousand square foot facility located in the heart of North Texas and have a global customer base.
Products are produced 100% in USA here in North Texas. All MFG equipment is also designed and manufactured in-house to protect its proprietary MFG process’s
Sales are through word of mouth, distributors, resellers, and external sales reps. This company has one dedicated business development person who manages a global sales model. Sales growth has been incredible and meeting demand has consistently been one of its greatest challenges.
This is a unique niche market manufacturing that has huge potential to grow through organic sales, acquisition, additional product lines, dept of products, etc.. Unlimited Potential
Growth: Company has grown year over year with a solid performance. The customer base is between U. S., Canada, Asia, and Europe

Financial

  • Asking Price: $6,500,000
  • Cash Flow: $1,000,000
  • Gross Revenue: $5,100,000
  • EBITDA: $900,000
  • FF&E: $750,000
  • Inventory: $990,000
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:27,000
  • Lot Size:N/A
  • Total Number of Employees:24
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

27,000 sf. Seller is also willing to sell the facilities. 27.000+ sf on 1.5 acres. Seller also has an additional 1.5 acres undeveloped that they will sell as well.

Is Support & Training Included:

Seller will provide all necessary training for a seamless transition to new owners.

Purpose For Selling:

Ready to Retire

Pros and Cons:

Competitive market, however, our client is known as best in the industry and has several patents tied to manufacturing that allows them to keep an advantage.

Opportunities and Growth:

The company has focused on keeping up demand thru production but could put more effort into marketing. Either thru a more direct sales model, attending more trade shows, or even developing a targeted marketing campaign. There is huge potential for growth in other vertical markets such as medical, Biohazard, etc. The company only needs ISO 9001 certification to grow exponentially in other vertical markets.

Additional Info

The venture was founded in 1990, making the business 32 years old.
The deal will include inventory valued at $990,000, which is included in the asking price.

The business has 24 employees and is situated in a building with approx. square footage of 27,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. However, the true reason and the one they say to you may be 2 completely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, current decrease in incomes, or a variety of other reasons. This is why it is extremely vital that you not depend completely on a seller's word, however rather, make use of the seller's answer along with your overall due diligence. This will repaint a more practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can indicate that profit margins are too small. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new customers? Many times, companies have repeat consumers, which develop the core of their day-to-day profits. Certain aspects such as brand-new competitors growing up around the area, roadway construction, as well as staff turn over can affect repeat customers and also negatively influence future incomes. One important point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the chance to develop a returning client base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Just how might the neighborhood average household income influence future income potential?