Brokerage, Financial & Consulting Services

THE BUSINESS: This screen printer/ decorator of apparel and glassware makes and sells $ 1.4 + MM of low priced advertising specialties, souvenirs, gifts and novelties. There is a 30 years history of sales growth, a straightforward manufacturing process, superior profitability, and great expansion potential in a congenial suburban location. Current Price reflects a reduction in asking for this turnkey business due to special circumstances.

WHY BUY?

• Highly profitable with rising sales and expanding above average (ROI 60%+) returns

• Established in region and national markets

• Easily learned techniques of manufacture

• Straightforward marketing – new website, trade shows, catalogues, reps and repeat clients

• Recently improved turnkey facility and trained, loyal staff

• Competitive niche: Price and service in modest sized shipments

• Quality lifestyle in suburban area near recreational amenities

• Extremely Motivated Seller will assist in an easy and orderly transition

FACILITIES & EQUIPMENT: The leased 18,000 square foot recently renovated factory has art production, printing and curing equipment, administrative offices and ample warehouse space for materials and inventory. The staff of fourteen is highly productive, loyal and economical, with the ability to significantly increase output by overtime or added shifts space.

COMPETITION: While there are numerous small and large competitors in the screen decorating  market, the secret to this company's growth and success is its ability to deliver modest sized orders on time and at a very competitive price.

CUSTOMERS: The company has a national market (40%) and regional market (60%) group of loyal customers who have a strong repeat percentage. Its products are sold through direct marketing efforts by a full time sales person, an active website, distributors, sales representatives and other trade show marketing efforts of the owners.

OPPORTUNITY FOR GROWTH: Sellers acquired this established company four years ago and doubled sales and profits with energetic marketing, new web site and catalogue, plant refurbishment, and acquisition of a compatible diversifying business. Current sales are from trade shows, active distributor reps and repeat clients. Buyer can readily learn the processes and grow sales and profits via new products, intensified marketing and skillfully applied enthusiasm.

FINANCIAL: Assets include equipment worth $ 150,000 and a current inventory estimated at $ 100 -120,000. Moderate receivables ($100k) and current payables ($125k) mean low working capital needs coupled with strong growing profitability that offers 25% ROTA and over 70% ROE. Sales have grown, with a synergistic acquisition, from $ 800,000 in 2004 - when acquired by the new owner - to $ 1,416,000 in 2007, and a gross margin of 60% has been established. Owners EBITDO, Earnings before Interest, Depreciation, Taxes and Owner's take out, including compensation, and non-recurring items has grown to a business cash flow of $ 282,000. A New Owner Pro-Forma take out of $ 250,000 per year is predicted after paying himself the same compensation as the current owner, and paying the same rent that the current owner collects, triple net, from the business.

SUMMARY PRICE AND TERMS: This growing, very profitable light manufacturer is fairly offered at $ 795,000 plus ware inventory (at cost, but estimated at $ 100,000 depending on seasonality) on a "turnkey" basis, with an attractive lease. Business is attractively priced by a motivated seller due to special family circumstances. Bank money is available for a qualified buyer with $ 185,000 to invest and some manufacturing or marketing experience. Seller will consider some modest financial participation and will assist an orderly transition.