Business Overview

This Company utilizes a unique technology to treat lumber, and manufacture a wide range of finished goods with commercial and residential applications. This technology was first discovered in Europe, and is 100% “green”, and totally eco-friendly. The products are very popular, and the demand is booming with architects, homeowners, designers, and builders.
The business operates from a 30,000 sq. ft. production facility, and a 10,000 sq. ft. office / warehouse / showroom located 90 minutes outside of Atlanta, Georgia. The facility is capable of producing 3 to 4 times its current production with the addition of more shifts. The rent for the 2 facilities is $10,000.00 per month.
Sixty percent of the revenue is generated through online sales with a “big-box” retailer, 20% with Amazon, and 20% through the companies website.
The revenue for the trailing 12 months through October is $2,118,010 with EBITDA of $987,550.00.

Financial

  • Asking Price: $3,250,000
  • Cash Flow: $785,000
  • Gross Revenue: $2,080,000
  • EBITDA: $785,000
  • FF&E: $1,350,000
  • Inventory: $300,000
  • Inventory Included: Yes
  • Established: 2013

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:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates from 2 adjacent facilities. There is a 30,000 sq. ft. production facility and a 10,000 sq. ft. office / showroom / warehouse. The combined monthly rent for the 2 facilities is $10,000.00 per month. The real estate is NOT available for purchase.

Is Support & Training Included:

The Seller will stay on in a training, transition, and operational capacity for up to 1 year depending on the needs of the Buyer.

Purpose For Selling:

The Seller is interested in relocating.

Pros and Cons:

This is a highly fragmented industry with NO clear leader.

Opportunities and Growth:

The implementation of a well defined and pro active sales and marketing plan would grow this Company significantly.

Additional Info

The venture was established in 2013, making the business 9 years old.
The deal will include inventory valued at $300,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. However, the genuine reason vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other reasons. This is why it is very crucial that you not rely completely on a seller's word, however rather, utilize the seller's answer combined with your total due diligence. This will paint an extra sensible image of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover things such as supplies, payroll, accounts payable, etc. Remember that sometimes this can mean that profit margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations 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 vendors that should be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new customers? Often times, businesses have repeat clients, which form the core of their daily revenues. Specific variables such as new competitors growing up around the location, roadway construction, and also personnel turnover can influence repeat customers and negatively impact future revenues. One important thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the chance to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? How might the local average home earnings impact future revenue prospects?