Listing ID: 82818
Buyers who are attracted to food production are on to something special. Processors and manufacturers of food products are especially attractive opportunities. This is an 11 year old meat processing company that has enjoyed strong growth in recent years. The Sellers have demonstrated a good track record for expanding the business from start-up to a solid operation. In 2011 the company opened a new 6,558 sq. ft. processing plant that is state of the art, with built-in coolers and a large smoker-cooler room. The enterprise maintains a great reputation in Southern Missouri. The business processes pork, beef and venison with a 3-1 ratio beef to pork ratio, although this can and does flip from time to time. The company has several private label customers with the potential to add more. A full range of smoked meats are sold to commercial and residential customers. There is a spacious retail area at the front of the processing plant.
- Asking Price: $1,100,000
- Cash Flow: $149,228
- Gross Revenue: $877,730
- EBITDA: N/A
- FF&E: $361,726
- Inventory: $7,569
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:6,558
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The primary facility is a new 6,558 sq. ft. processing plant which is a stand-alone structure in an industrial park in Southern Missouri. There is enough space and equipment to add a second production line. The real estate carries a sale price of $705,000. This price is included in the Total Price for the enterprise.
This meat processor is licensed by the US Department of Agriculture and is Organic Certified. Being licensed by the USDA allows their products to be sold anywhere in the United States. A federal meat inspector is on-site at all times when the meat is being processed. The USDA Certification is extensive, but it is transferrable to a new owner who must apply for the certification transfer.
Owners want to retire.
There are no other meat processors in the immediate area.
The spacious relatively new plant still has room for substantially more growth. To maximize that growth the company secured a grant in 2020 from the Missouri Department Agriculture that will allow the owners to increase production. A team of quality employees necessary for continued success is in place. There is room for force additions.
The company was established in 2010, making the business 12 years old.
The sale shall include inventory valued at $7,569, which is included in the asking price.
The company has 11 FT employees and is situated in a building with approx. square footage of 6,558 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell businesses. However, the genuine factor and the one they say to you might be 2 completely different things. For instance, they might state "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a variety of other factors. This is why it is extremely important that you not count totally on a vendor's word, however instead, use the vendor's answer combined with your total due diligence. This will repaint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover things such as stock, payroll, accounts payable, etc. Remember that in some cases this can imply that profit margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new customers? Often times, companies have repeat clients, which develop the core of their everyday profits. Specific aspects such as new competition sprouting up around the location, roadway construction, and employee turnover can affect repeat clients as well as negatively impact future profits. One vital thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the local typical house earnings influence future earnings prospects?