Business Overview

75% Growth with $600K net on $1.4M sales 2021 projected….This “niche” 18year old company manufactures proprietary “patented” parts made from recycled plastics for use in the wood flooring industry. The business has trade certification and standards for its “patented” products that are required in the installation and finish of large commercial wood floor systems like gyms and sports courts. The company has grown nearly every year since 2015 and is virtually recession proof as indicated by its outstanding sales volume in 2020 and $327K in A/R for 2021! This company is forecasting over $1.4M 2021 sales and utilizes a regional strategic manufacturing partner to outsource the injection molding of the core products. A seasoned Plant Mgr and 3 FT employees provide the product finish and shipping maintaining low operating costs. The Company has had more than 500% growth over the last 10 years! Revenues have been consistent over the last 3yrs averaging close to $800K with net cash flow of approx. $350K. The company is in a strong position to grow 50% or more annually due to the growth of several key customers and state/local infrastructure growth nationally. The business is only a few miles from major interstates and highway arteries and the low cost of living, minimal competition and existing skilled labor force make the location very attractive. The owners will provide extensive training and support for up to 30 days. The business also has 7,000 sq ft building on 6 acres of rural real estate nestled in Central OK available for lease/purchase. The business is priced at $2.99 million, has patents valued at over $3M and over $1 million in equipment(price new)! SBA financing with 10% down and no payments for 1yr! Please call Jay Shrewder today for more information 918-230-9813!!!

Financial

  • Asking Price: $2,990,000
  • Cash Flow: $700,000
  • Gross Revenue: $1,400,000
  • EBITDA: $600,000
  • FF&E: $2,000,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 2003

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:7,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7000 sq ft Metal Bldg with full HVAC on 6 acres

Is Support & Training Included:

30 days with manager staying under employment contract

Purpose For Selling:

Retirement

Pros and Cons:

No competition in US for "niche" patented products used in flooring industry

Opportunities and Growth:

Could easily double or triple revenue with little or no future capex

Additional Info

The venture was established in 2003, making the business 19 years old.
The sale does include inventory valued at $150,000, which is included in the asking price.

The company has 5 employees and resides in a building with disclosed square footage of 7,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell companies. Nonetheless, the true reason and the one they say to you may be 2 totally different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of other reasons. This is why it is really essential that you not count completely on a seller's word, however instead, make use of the seller's answer together with your general due diligence. This will paint a much more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover items such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in brand-new customers? Most times, companies have repeat consumers, which create the core of their daily profits. Certain factors such as new competitors growing up around the location, road construction, as well as employee turn over can influence repeat customers as well as negatively affect future revenues. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business often, the better the possibility to develop a returning consumer base. A last thought is the general 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 mean household earnings impact future income potential?