Brokerage, Financial & Consulting Services

MONEY SAVING MAILING SERVICE BUSINESS

Highly Desirable Northern Vermont Community 

Price: $ 1,200,000 plus inventory    Sales: $ 1,150,000      EBITDO: Projected $ 214,000

BUSINESS: Mailing is expensive and the cost continues to grow. This business specializes in saving its customers both time and money in bulk mailings. It has experienced a high level of growth by cultivating a loyal clientele that accounts for high repeat business. The industry is still in a growth phase and a considerable upside has been identified.

WHY BUY?

• Revenues have exceeded $1,300,000 annually.

• Cash Flows of $260,000.

• Strong, loyal and growing customer base.

• High repeat business.

• Needed and valuable service.

• Large state of the art asset and real estate component to price

• Commitment from the sellers to assist in the transfer.

• Easily learned with proper training.

• Highly respected business.

• Desirable area to live and work

FACILITIES & INFRASTRUCTURE: The business operates from an owner occupied 8,300 square foot building. The equipment is considered state of the art and most of it has been recently acquired or upgraded. The staff consists of two full time employees, three part time employees and two working owners.  The sellers own the real estate personally and lease it back to their corporation. The facility sits on approximately 1/2 acre of land. The building is divided into facilities' offices, a conference room, production and storage areas. The square footage is sufficient to allow for considerable growth. There is adequate parking for employees and customers on site. The location is convenient to the interstate and major routes in the area. The equipment is state of the art and many pieces were recently acquired.

COMPETITION & CUSTOMERS: There are no independent competitors in this company's immediate market that offer the service. There are approximately a dozen similar companies throughout the state, most of which offer this service as a sideline and not a primary service. This business services customers that include businesses, government agencies, fraternal and civic organizations, politicians and political groups, individuals and other groups. No customer is a significant customer on a repeat annual basis.

FINANCIAL: The business has built sales to the $1.3 Million level which produces a healthy cash flow exceeding $250,000. In late 2006 a former customer started competing and "bought" business by price cutting. That competitor went bankrupt in February 2008 and revenues have returned to prior levels. Margins have remained within an acceptable range. Equipment valued at $ 225,000 is included in the asking price, as is the real estate valued at $ 500,000. Sales in 2008 are forecast to be above $ 1,150,000 with EBITDO - earnings before interest, taxes, depreciation and owner draw - above $ 214,000.

OPPORTUNITY: This is an attractive service business with a bright future. The industry itself is still in its infancy. Growth is occurring naturally as the public becomes better educated of the savings that can be accomplished through utilizing the services of these companies. Future growth of this company could be significant if a strategic sales and marketing plan were implemented. If a new owner were to continue to operate this business as it has been, there are still very attractive cash flows and returns on investment. This business is easily learned through training. The business has acquired state of the art equipment to aid in the growth. No major capital expenditures have been identified. A recent building purchase provides all the space required for The immediate future. There is a high repeat business from existing customers and new business is being developed all the time. Since referrals seems to be the main reason behind the historical growth of the company, the customer base appears to be happy with the services and should continue so long as quality and service remain. Sales of over $1,300,000 have produced very attractive cash flows for the owners. Areas to consider for growth and expansion include; 1) Design and implement a proactive sales and marketing strategy. 2) lncrease advertising. 3) Utilize promotional tactics through press releases. 4) Seize opportunities to educate the public on the value of this service. 5) Form strategic partnerships with area companies so they can offer this service as part of their quotes to their customers  6) lncrease the geographic territory covered.

SUMMARY PRICE AND TERMS: This niche service business has seen considerable growth over its history. Additional growth opportunities have been identified. This business generates a good cash flow. The purchase price is supported by equipment ($225,000), real estate ($500,000) and a multiple of earnings. This is an easily learned business with proper training. The business is attractively priced at $1.2 Million plus inventory. Of this price approximately $225,000 represents the fair market value of the equipment and $500,000 is real estate. A down payment of $250,000 is anticipated in order to obtain bank financing.