Business Overview

The business is a direct importer and manufacturer of home gaming products and other gift merchandise. Products include poker chips, playing cards, chess, backgammon and other board games, fitness accessories, home products, and other general gift merchandise. They offer customization of gaming products and do all customization in house.
The products are sold wholesale and retail online. Wholesale customers are primarily to the distributors in the promotional products industry. Retail sales are primarily through online marketplaces such as Amazon and eBay and other marketplaces, and through their own ecommerce web sites.
The business is a Supplier member of ASI (Advertising Specialty Institute), PPAI (Promotional Products Association International), and SAGE. Promotional products Distributors who are also members of above organizations act as middlemen and brokers who market and sell the custom gaming and other products to their customers and end users.
Key company highlights:
• Direct importer and manufacturer of most products under own brand keeps cost low!
• Financial growth opportunity – Hiring an aggressive salesperson to call on the promotional industry distributors would help increase sales of higher profit margin on customized products.
• Fast Growing Online Industry – Existing relationships with factories and suppliers in China, Taiwan, and Italy puts the business in a good position for fast growth.
• Location – business is not location based and a potential buyer can easily move the business to another state with no disruptions or loss of customers.

Financial

  • Asking Price: $1,700,000
  • Cash Flow: $686,178
  • Gross Revenue: $4,705,439
  • EBITDA: N/A
  • FF&E: $118,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,000
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

12,000 Square foot warehouse space with offices in the front totaling 3,750 square foot. 4 bathrooms, 2 small break room spaces, 9 office spaces and 2 lobby/entrance space that can be used as office. One large production space. The space has been leased since 2003. Currently in the 4th year of a 6-year lease extension agreement.

Purpose For Selling:

Retirement

Additional Info

The company was started in 2003, making the business 19 years old.

The company has 9 employees and is located in a building with estimated square footage of 12,000 sq ft.
The property is leased by the business for $6,750 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell companies. However, the true factor and the one they say to you may be 2 absolutely different things. For instance, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is extremely vital that you not count absolutely on a vendor's word, yet rather, use the vendor's answer in conjunction with your general due diligence. This will repaint a more practical picture of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new consumers? Many times, businesses have repeat customers, which create the core of their everyday profits. Specific variables such as new competitors growing up around the area, road construction, and personnel turnover can impact repeat clients and also adversely impact future profits. One crucial thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood typical house earnings impact future earnings prospects?