Business Overview

Successful, long tenured pallet manufacturer established 1975. Current owner wishes to slow down and retire after owning the business for 34 years. Weathering some challenging recent years, owner staged a great turnaround in 2020 during COVID-19’s increased logistics demand and changing consumer behaviors. On-time delivery ethic, and low overhead structure ensured sales growth of almost 50% in 2020! Revenue outlook for 2021 even better, given excellent year to date sales! Owner does no active marketing/advertising, and business has zero digital online sales presence. Growth opportunities abound for new ownership!
8,500 sqf steel building on 4 acres of land in industrial zone

Financial

  • Asking Price: $1,390,000
  • Cash Flow: $300,000
  • Gross Revenue: $1,642,486
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:10
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell operating businesses. Nevertheless, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of other reasons. This is why it is really important that you not count entirely on a seller's word, yet rather, use the vendor's solution combined with your general due diligence. This will paint an extra sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new clients? Most times, businesses have repeat consumers, which develop the core of their everyday earnings. Certain factors such as new competition growing up around the location, roadway construction, as well as personnel turnover can influence repeat customers as well as adversely impact future incomes. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business regularly, the higher the chance to build a returning client base. A final thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Just how might the local median family income influence future income potential?