Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1073120
The owner of this excellent 35 year old business purchased it with a small down payment, an SBA loan and a seller note. Now, 10 years later he is debt free and boasts years of paying himself $100,000 annually. He plans to sell his business and join his wife in an unrelated endeavor. The seller’s life style change will give a new owner-operator the opportunity to repeat the seller’s successful business history.
The company is housed in an attractive late model 13,500 square foot building located on a two acre parcel in a desirable neighborhood of a West Michigan City. The real estate was purchased by the owner five years ago, and he will either lease it to the buyer at a favorable triple net lease at 6% of revenues or sell it at market price in a separate transaction.
The company has three valuable, loyal, full-time employees and three part-timers who are involved in one or more of the company’s four profit centers all of which are related to commercial floor care:
- Manufacturing, selling and servicing a branded line of propane powered commercial floor cleaning and waxing machines
- Producing, selling and distributing both branded and private label lines of commercial floor cleaning chemicals and disposable products
- Nightly floor care for 250,000 (+) square feet (and growing) of big box stores
- Operating as a warehouse (shipping/receiving) and the front office for a major out-of-state service business which cleans and cares for the floors of 1000 big box stores throughout the country.
The business is non-seasonal, has no customer concentration, and has thrived throughout the entire Covid-19 pandemic as large retailers have ratcheted up the need for clean floors to a “no exceptions” level. And for a growth minded buyer, there are opportunities galore especially in chemicals and floor care.
The business has annual revenues of not quite $1,000,000 and records annual SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) of $175,000. The business is being offered for $550,000 which is an attractive 3.1x multiple of SDE. Included in the price is $180,000 of active, salable inventory and $235,000 (cost basis) of fixed assets.
The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. The likely buyer would qualify for an $110,000 seller note which when with combined with $80,000 buyer cash would leave $360,000 for SBA financing. After paying a buyer a $100,000 salary, there is $75,000 left for the projected $60,000 annual debt service (for the combination of the SBA term loan and the Seller note) – a bank acceptable 1.25x debt coverage ratio.
To learn more about this attractive, affordable, cash-flowing niche manufacturing-distribution-service business, please contact Mike Greengard (firstname.lastname@example.org).
$235,000 of fixed assets (cost basis) and $180,000 of inventory included in the deal. Located in an attractive late model 13,500 square foot building located on a two acre parcel in a desirable neighborhood of a West Michigan city.
Location(s): West Michigan
Asking Price: $550,000
Cash Flow: $175,000