Business Overview

Manufacturer of Proprietary products sold to diverse niche markets throughout the U.S. and Canada.
This is a high profit margin business located in Empowerment and Opportunity Zones. Our Client established the business in 1983 and they operate with the latest technology and an efficient and highly developed manufacturing process. Owner will stay for extended training period. CALL US! THIS IS AN EXCELLENT OPPORTUNITY!!!

Financial

  • Asking Price: $1,295,000
  • Cash Flow: $385,000
  • Gross Revenue: $1,315,451
  • EBITDA: N/A
  • FF&E: $650,000
  • Inventory: $120,000
  • Inventory Included: Yes
  • Established: 1983

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:16,000
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Property includes two Buildings, one is 9,900 sq. ft. on 3.07 acres; and the other is 6,000 sq. ft. located on 3.51 acres. They operate at less than 30% capacity and room for adding 200,000 sq. ft. addition. The Real Estate can be purchased for $750,000 or leased at a fair market rate.

Is Support & Training Included:

The Seller will train for an extended amount of time and potentially remain on a Consulting arrangement. The employees are all cross-trained and very competent.

Purpose For Selling:

After nearly 40 years in the business the Client is ready for a break.

Pros and Cons:

Like any business there are competitors, some offer quicker delivery and some offer lower pricing, but most lack the product diversity and quality that our client produces and that the customers require.

Opportunities and Growth:

I know it's trite to say "This business has tremendous growth potential" but in this case it's true. Our client is very detailed not only in the production process, but in all the processes that go with operating a business. However, Sales & Marketing has never been his strong point but there are key strategies for growth, such as outward bound marketing; attending industry conferences; working with current customers to expand the products he can produce for them; and of course broaden his customer base. These are all very realistic growth opportunities.

Additional Info

The company was started in 1983, making the business 39 years old.
The deal will include inventory valued at $120,000, which is included in the asking price.

The business has 7FT 1PT employees and is situated in a building with disclosed square footage of 16,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. However, the genuine factor and the one they say to you might be 2 completely different things. As an example, they may state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of other factors. This is why it is very important that you not rely totally on a seller's word, but rather, utilize the seller's solution together with your overall due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be satisfied or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new customers? Often times, companies have repeat consumers, which create the core of their daily revenues. Specific factors such as new competitors growing up around the area, road building and construction, and employee turn over can impact repeat consumers and adversely influence future incomes. One vital point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the regional typical home earnings impact future revenue prospects?