Brokerage, Financial & Consulting Services

WOOD PRODUCTS MANUFACTURER

Highly Desirable Northern Vermont Community 

Price: $ 395,000 plus inventory    Sales: $940,000      EBITDO: Projected $ 211,000

BUSINESS: This 50+year old business manufactures a combination of proprietary consumer products, licensed products for major league sports teams, as well as component work for other wood product and consumer goods manufacturers, including well- known name brand furniture makers. It has a manufacturing niche in the wood products industry that has been developed from its specialized equipment and ability to customize orders rapidly. A trained and experienced workforce further enhances it. A diversified customer mix and stable suppliers make this an appealing business.

WHY BUY?

• The hard work of establishing this business was accomplished years ago. Trying to enter a market like this and build a reputation can only be created over a significant period of time.
• This quality manufacturing opportunity offers a buyer a chance to operate a significant business that has worldwide customers.
• This is a business located in one of the most desirable communities in the United States. Lifestyle considerations playa major role in the ownership of this company.
• There are ample opportunities to grow the business.
• The company has a proven track record with stable earnings for the new owner.
• Seller will provide transition support for this business to help assure the success of new owners.

FINANCIAL: The company has had Sales of $ 1,000,000 in 2005, and $ 940,000 and $900,000 in subsequent years, with an anticipation that a new owner can exceed $ 950,000 in his first year.  Margins, which were in the low 20% are expected to reach 30% in 2007 and produce an EBITDO (Earnings before interest, depreciation, taxes and owner’s items) of above $ 20,000. More detailed financial information will be made available to qualified buyers. The business has maintained a stable gross profit well within industry standards. Labor costs have also been in a consistent range of20-25%. Operating costs show only minor variances from year to year and indicate good management control over these overhead costs. The owner's historical discretionary cash flow is between $82,000 - $120,000.

SUMMARY PRICE AND TERMS: The Company is offered at $395,000 plus inventory. All tangible and intangible assets of the business to include but not limited to: equipment, machinery, furniture, fixtures, inventory, point-or-sale systems, lease hold improvements, signage, phone number and all intangibles to include the business name, vendor lists, customer lists, records, signs, name, web sites, general intangibles and other items necessary for the operation of the business and goodwill would be included in the sale. The owner is prepared to provide suitable consulting and non-competition agreements, as well as all necessary transition services. Specifically excluded from the sale will be cash, cash equivalents and any debt. An equity investment of $200,000 and minimum net worth of  $600,000 is anticipated.

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