Business Overview

Manufacturer and importer of commercial office seating with operations in the Midwest and Canada (2 separate entities under one US umbrella ownership) averaging $7M in sales annually and owner cash flow in excess of $1.6M in 2021. Long time ownership has built this well-established company with national distribution into a flexible manufacturer that outshines the competition with the ability to react quickly to orders. Customers include Commercial, Health Care, Higher Education, and GSA Government contracts. Includes trademarks and patents. SBA Prequalified. This is a great opportunity if you are the right buyer. For additional information please contact listing agent Brandon Owens at 513-392-6750 or brandon@fcbb.com.

Financial

  • Asking Price: $4,250,000
  • Cash Flow: $1,629,892
  • Gross Revenue: $6,740,732
  • EBITDA: N/A
  • FF&E: $80,218
  • Inventory: $2,200,288
  • Inventory Included: Yes
  • Established: 2003

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:31
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two separate leased locations. Midwest and Canada. Total of about 57,000 square feet with a Total Rent about $28,000. Flexible leases. Seller is active in the business with 14 FT employees, 2 PT employees and 15 Independent Contractors. $2,200,288 in Inventory and $80,218 in FF&E included in Asking Price.

Is Support & Training Included:

Negotiable

Purpose For Selling:

Retiring

Pros and Cons:

Brand name management and product differentiation are huge pluses with this company. They have patented products that make them unique.

Opportunities and Growth:

Company has not yet fully exploited e-commerce possibilities with their products.

Additional Info

The company was started in 2003, making the business 19 years old.
The sale does include inventory valued at $2,200,288, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell companies. Nonetheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might state "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is very crucial that you not rely absolutely on a seller's word, however instead, utilize the vendor's answer along with your general due diligence. This will paint a much more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new consumers? Many times, businesses have repeat clients, which form the core of their daily revenues. Specific factors such as new competition growing up around the area, road construction, as well as employee turnover can influence repeat clients and negatively impact future revenues. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the chance to construct a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the regional mean household earnings effect future income potential?