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Asking - $1,200,000 plus Inventory (est $ 150,000) Cash Flow - $ 367,000
THE BUSINESS: Quality decorator of apparel and glassware makes and sells $ 1.3+ MM of low priced advertising specialties, souvenirs, gifts and novelties. There is a straightforward manufacturing process, a 30 years history of sales growth, low risk, superior profitability, and great expansion potential in a congenial suburban location.
FACILITIES AND EQUIPMENT: 18,000 square foot recently renovated leased 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.
OPPORTUNITY: 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.
WHY BUY?
· Highly profitable with rising sales and expanding above average (40%+) returns
· Established in region and national markets
· Easily learned techniques of manufacture
· Straightforward marketing –new website, trade shows, reps and repeat clients
· Recently improved leased turnkey facility and trained, loyal staff
· Price and service in a competitive niche
· Quality lifestyle in suburban area near recreational amenities
FINANCIAL: Sales have grown from $ 785,000 in 2004 to over $ 1,360,000 in 2006 due to effective expanded selling and a synergistic acquisition. Gross Margins at 60% or better. EBITDO - earnings prior to interest, taxes, depreciation and owner's take outs - approach $ 375,000. Assets include equipment worth $ 250,000 and a current inventory estimated at $ 150,000. Moderate receivables ($150k) and current payables ($100k) mean low working capital needs coupled with strong growing profitability that offers 17% ROTA and over 40% ROE. Currently leased real estate - value $ 400,000+ - can be purchased.
SUMMARY AND TERMS: This growing, very profitable light manufacturer is fairly offered at $ 1,200,000 plus ware inventory (Est. $ 150,000). Bank money is available for a qualified buyer with $ 325,000 to invest and some manufacturing or marketing experience. Seller will consider some financial participation and will assist an orderly transition.
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