Business Overview

This diversified company is a trusted Tier 1 OEM supplier of metal parts along with being a specialty distributor of industrial and consumer products, and an e-commerce provider of eco products. Their diversified product and revenue base has generated consistent sales and profit growth since the company’s inception in 2004. The Company is a one-stop solution provider, offering engineering, sourcing, quality assurance, inventory management and logistics services both in the U.S. and in China. The Company outsources manufacturing overseas, which eliminates capacity bottlenecks and allows flexibility for continued growth.

The Company has multiple US based warehouse locations and overseas contract manufacturers. They operate very efficiently with little overhead and with an experienced team of employees to help run the day-to-day operations. Additionally, the Company has a very consistent and stable customer base. The Company presents strong opportunities for continued growth across all product lines. In 2021, the Company is seeing increased demand for its products in all segments and anticipates another record year.

Financial

  • Asking Price: N/A
  • Cash Flow: $1,312,396
  • Gross Revenue: $11,490,903
  • EBITDA: N/A
  • FF&E: $46,925
  • Inventory: $1,243,233
  • Inventory Included: Yes
  • Established: 2004

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:44,000
  • Lot Size:N/A
  • Total Number of Employees:11
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The business was started in 2004, making the business 18 years old.
The transaction does include inventory valued at $1,243,233, which is included in the listing price.

The company has 11 employees and is situated in a building with estimated square footage of 44,000 sq ft.
The real estate is leased by the business for $25,008.33 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 entirely different things. For instance, they might say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is really essential that you not rely entirely on a vendor's word, however rather, use the seller's response combined with your total due diligence. This will paint a much more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can suggest that earnings margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new consumers? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Specific factors such as brand-new competition growing up around the location, roadway building and construction, and staff turnover can affect repeat customers as well as negatively impact future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood median household income influence future earnings prospects?