Business Overview

Founded 50+ years ago, the Company is a Michigan-based profile wrapping business. With advanced equipment and experienced employees, the Company has the capabilities to produce even the most complex profile wrapped moldings. The Company’s average employee tenure of 21+ years explains its unique ability among profile laminators to produce highly technical and difficult laminated mouldings on time, with exceptional quality.

Starting as a pioneer in the profile wrapping industry, the Company grew to be one of the first to implement groundbreaking industry technologies. The Company offers profile wrapped mouldings and raw MDF mouldings for a number of applications. The Company’s focus on quality and service is reflected in its long-standing customer relationships. Among the Company’s customers, over 25% have purchased from the Company for 20+ years, while 50+% have purchased from it for 10 years or more. The Company’s well-built relationships and industry reputation allow it to retain its customers while simultaneously attracting new ones seeking high-quality offerings.

The Company highlights a solid equipment base. This equipment, coupled with a leading workforce, allows it to stay on the cutting edge of market breakthroughs. The Company’s products are applied in growing markets, where customers demand high quality and strong service from their suppliers.

The current owner of the Business serves as President and oversees all Company operations. The owner’s primary responsibilities include purchasing, customer service, managing the production schedule, and handling major financial decisions. Current ownership is committed to a successful transition of the Business and is willing to stay on for a set period of time to allow new ownership to get up to speed.

The Company operates out of 56,463 square foot facility with an estimated value of $900,000. Current ownership is open to discussions surrounding the sale or lease of facilities.

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Financial

  • Asking Price: N/A
  • Cash Flow: $497,148
  • Gross Revenue: $2,617,037
  • EBITDA: N/A
  • FF&E: $272,000
  • Inventory: $406,845
  • Inventory Included: Yes
  • Established: 1970

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:56,463
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

56,463 square foot facility with 2,700 square feet of office space and 53,763 square feet of production space. Built in the 1960s with additions completed into the 1980s.

Is Support & Training Included:

Ownership is committed to a successful transition and is willing to stay on for a period of time.

Purpose For Selling:

Ownership is seeking to retire.

Pros and Cons:

Investment Highlights Include: (1) Established Reputation Within the Profile Laminating Industry (2) Strong and Long-Standing Customer Relationships (3) Tenured and Experienced Employees

Opportunities and Growth:

Growth Opportunities Include: (1) Implement an Aggressive Marketing and Sales Strategy (2) Diversify Product Offerings (3) Expanded Workforce Through Apprenticeship Programs

Additional Info

The business was established in 1970, making the business 52 years old.
The transaction shall include inventory valued at $406,845, which is included in the listing price.

The company has 12 employees and resides in a building with disclosed square footage of 56,463 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell businesses. However, the genuine reason vs the one they say to you might be 2 totally different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a range of various other reasons. This is why it is extremely vital that you not count entirely on a vendor's word, however rather, utilize the vendor's response along with your general due diligence. This will repaint an extra practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that revenue margins are too tight. Lots of businesses come under 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 commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in new consumers? Most times, businesses have repeat clients, which develop the core of their day-to-day earnings. Specific factors such as brand-new competitors sprouting up around the area, roadway building, and also employee turn over can impact repeat clients and negatively influence future profits. One important 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? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to build a returning customer base. A final idea is the general area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the regional median house income influence future earnings potential?