Business Overview

The company is a designer and manufacturer of custom engineered sewn products for the industrial, medical, defense and semiconductor industries. The experienced ownership team has earned a strong reputation in the industries they serve with their ability to design and produce proprietary sewn products. The company’s expertise has allowed them to serve a loyal customer base for over 30 years. The company’s many strengths include their flexible operations, rigorous quality control, and collaborative design work that allows the company to win highly technical and profitable contracts.

The business houses its operations in 2,000 sq. ft. facility at the current owner’s residence staffed by the owner and Office Manager, and the sewing contractors work remotely. The operations can be relocated anywhere within the US. The current ownership is willing to provide training and transition as well as seller financing for a qualified buyer.

Financial

  • Asking Price: $899,000
  • Cash Flow: $279,307
  • Gross Revenue: $651,907
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1979

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:4
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement and Other Interests

Additional Info

The business was founded in 1979, making the business 43 years old.
The transaction will include inventory valued at $10,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell businesses. Nonetheless, the genuine factor and the one they tell you might be 2 totally different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competition, current reduction in profits, or an array of various other factors. This is why it is really important that you not rely entirely on a seller's word, but instead, make use of the vendor's response in conjunction with your total due diligence. This will paint an extra reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that profit margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new clients? Many times, operating businesses have repeat customers, which develop the core of their daily revenues. Specific factors such as brand-new competition sprouting up around the location, roadway construction, and employee turn over can impact repeat consumers and adversely impact future earnings. One essential 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? Obviously, the more people that see the business regularly, the higher the opportunity to build a returning customer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the local average family earnings impact future revenue potential?