Listing ID: 84013
CURRENTLY UNDER LOI – Highly profitable and growing specialty manufacturer of consumer products made from wood and acrylic, sold direct to consumer through multiple e-commerce platforms. Business is booming and there is no slowing down, as more online distribution channels are requesting products from this manufacturer. This business would make be an ideal fit for both the owner operator that wants a successful cash flowing business or the strategic buyer that can leverage an online distribution platform and consumer client database.
This business has developed some strategic supply relationships that give it a competitive advantage both with the wood products they produce as well as the acrylics. These differentiators will help the new owner continue on the path to success. Additionally this business has been successful at avoiding supply chain issues during recent events and that too will be a benefit shared.
- Asking Price: N/A
- Cash Flow: $1,198,821
- Gross Revenue: $4,139,305
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $80,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:16,500
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
16,500 square foot facility on .67 acres, provides ample space for manufacture, storage, and operations.
Seller will provide training to help the purchaser take over providing a smooth transition while learning the business and its operating activities, gaining and understanding of the customers and vendor partners, and building a working relationship with the employees.
There are competitors in this space on a national scale, however the markets served by this business and its competitors continues to see great growth. That along with untapped markets asking for products from this business, seller sees plenty of growth and opportunities.
Tremendous growth opportunities with additional online distribution channels requesting products, as well as specialty pet industry products and personal protection items. There are also great opportunities for increased sales and profits with improved processes and continued website and online marketing improvements.
The venture was founded in 2000, making the business 22 years old.
The transaction shall not include inventory valued at $80,000*, which ins't included in the asking price.
The business has 12 employees and is situated in a building with approx. square footage of 16,500 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 absolutely different things. For instance, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, recent decrease in profits, or a range of other factors. This is why it is extremely crucial that you not count completely on a seller's word, however instead, use the seller's response together with your total due diligence. This will repaint an extra practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new clients? Most times, businesses have repeat consumers, which create the core of their everyday earnings. Specific variables such as new competitors sprouting up around the location, roadway building and construction, and personnel turn over can impact repeat customers and also negatively influence future earnings. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the better the chance to build a returning customer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? Exactly how might the regional typical household earnings effect future income potential?