Contact: Steve Kandt
Email: [email protected]
Your Reference ID: SK1022019
It has been a great 24-year run for this successful multifaceted business which specializes in retail awards, engraving & promotional products, but it is now time for the original owner to transition the company to only its second owner-operator.
The business has numerous revenue streams: plaques (21.5% of sales); trophies (13% of sales); promotional products (7%); medallions (6%); acrylic awards (7.1%); engraved plates (4%); name badges (6%) with several other categories comprising another 35% of sales. And all this with only three full-time and one part-time employee to help the seller.
Operating out of a leased 2,150 sf building (1250 in retail space, 900 in storage space) on a well-traveled road in a desirable community in SE Michigan, the company enjoys a very favorable $2,150 monthly rent, which is only 3.0% of 2018 revenues. This is primarily a “b to b” business, with corporate customers, charities, and schools accounting for nearly 80% of revenues. Customer concentration isn’t a factor, with the top customer for the past 3 years accounting for 12% of sales. Online sales account for 16% of revenues while retail sales through the store account for less than 12% of revenues.
Competition is scarce, with only two other shops within a 20-mile radius that compete in some of the products offered. There is no single true competitor.
The business, which averaged nearly $660,000 of revenues during the past five years, is being offered for $295,000 which is an attractive 2.3x the average annual $128,000 SDE (seller’s discretionary earnings – the historical cash flow available to pay an owner-operator and service debt), recorded over the same five-year period. The seller is contemplating an asset sale which has the seller retaining cash and A/R, while retiring all liabilities. The listing price includes all equipment and inventory. A seller note will be available to a qualified buyer, and the seller will offer extended training to suit the buyer’s needs.
For more information on this attractive and successful business opportunity, please contact Steve Kandt (firstname.lastname@example.org).
Operating out of a 2150 sf leased facility on a well-traveled road in a desirable metro-Detroit area suburban community
Location(s): Metro Detroit
Asking Price: 295,000
Cash Flow: 128,000