Business Overview

It has been a great run for the founder-owner-seller of his very successful 13 year old business, but now he plans to sell his outstanding company and retire after transition training for the new owner-operator.

And what a company he has to sell…there are multiple profit centers incorporating manufacturing, distribution, sales, installation and service, all of which are on a B to B model.

The company has two full-time, experienced, respected and well-compensated salesmen who work on projects often years in advance of the installation date. This long lead time creates a virtual insurmountable barrier to entry for potential competitors.

The product is specified by architects and designers and is destined for municipal parks, colleges, high schools and middle schools. The products range in complexity from large, intricate commercial playground apparatus to aluminum bleachers to everything in-between – picnic shelters, climbing walls, scoreboards (indoor and outdoor), scoring tables, basketball & volleyball systems, goals (soccer and football) to name several.

Sales penetration includes new and recurring customers throughout several upper Midwestern states. Sales are also generated by the company’s team of in-house inspectors who help customers comply with State mandates for annual inspections. When issues are found, corrections can be addressed by the company’s service techs or lead to purchase orders for replacement product. There is no customer concentration.

The business operates out of an 18,000 square foot company-owned, late model, attractive building (included in the sale) in a suburban city adjacent to Lake Michigan. The business employs 12 people of whom several work from remote offices or spend several days a week on the road inspecting and/or servicing installations.

Now the financial information: The business has averaged over the past four years annual revenues of $3.3 million and nearly $700,000 of annual SDE (seller’s discretionary earnings – the historical, normalized cash flow available to pay an owner-operator and service debt). The company has ample late-model equipment and vehicles so the successful buyer will have minimal capex requirements post-closing.

The intended asset sale includes the enterprise value of the business, all fixed assets, rolling stock (trucks), approximately $80,000 of inventory, and the real estate (with a recent market value of $750,000). The seller plans to retain cash and A/R while retiring all liabilities. In addition, for a qualified buyer, the seller will plan to carry a low to mid-six figure seller note.

The listing price is $3.7 million which when coupled with a combined total of $750,000 of buyer cash and seller note would result in an annual cash flow (AFTER debt service) of nearly $400,000 for the buyer. For more information on this outstanding, high cash flowing multi-faceted, niche business, please contact Mike Greengard ( or 616-450-0707.


  • Asking Price: $3,700,000
  • Cash Flow: $700,000
  • Gross Revenue: $3,300,000
  • FF&E: N/A
  • Inventory: $80,000
  • Inventory Included: Yes
  • Established: 2008

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:18,000
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Operates out of a 18,000 square foot late model, attractive building in a suburban city adjacent to Lake Michigan

Is Support & Training Included:

Owner will provide training and transition support.

Purpose For Selling:


Additional Info

The business was founded in 2008, making the business 14 years old.
The transaction will include inventory valued at $80,000, which is included in the suggested price.

The company has 12 employees and is located in a building with estimated square footage of 18,000 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell companies. Nevertheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competition, current reduction in revenues, or a variety of other factors. This is why it is really vital that you not rely totally on a vendor's word, but rather, use the vendor's answer along with your overall due diligence. This will repaint an extra realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover points like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that revenue margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in new consumers? Most times, businesses have repeat consumers, which form the core of their day-to-day earnings. Specific aspects such as brand-new competitors growing up around the area, road construction, and employee turnover can affect repeat customers and also adversely impact future revenues. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the greater the opportunity to build a returning client base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? How might the regional typical family earnings effect future earnings prospects?