Event Production Company with Tent Rental Business

Contact: Tim Carter
Phone: 616-560-1080
Email: [email protected]
Your Reference ID: TC1041017

Description:

The founder/owner/seller of this successful 50 year old Michigan business built his company by establishing a reputation for outstanding service, quality and responsiveness to his customer’s needs. Now at retirement age, the owner has decided to proactively seek the successor for his business. The seller is willing both to stay on for a negotiated transition period and to carry a meaningful seller note for a qualified buyer.

The company, located in a desirable and growing Michigan community, provides attractions, games, rides, tents and entertainment for corporate, government and private events as well as conducting fund raising activities for non-profits. The business operates out of a 20,000 square foot warehouse facility which includes 1,500 feet of office space. In addition to the full time owner the company employs four people year-round (all experienced and loyal) and seasonal help as required. The real estate (owned by the seller) is ideally situated in an area central to both customers and major highways. The buyer can expect a lease with attractive terms.

Annual revenues have averaged $1.2 million over the last three years with an average annual SDE (normalized discretionary earnings for an owner-operator to pay himself and service debt) of $200,000 for the same period. The seller anticipates an asset sale which will include all fixed assets with an estimated value in place of approximately $300,000. The original cost of the fixed assets was in excess of $800,000 which obviously represents a significant barrier to entry for any contemplated startup competition.

The listing price for the business is $695,000 which is less than 3.5x SDE. The sellers will retain cash and A/R while retiring all liabilities. Inventory (merchandise) of approximately $100,000 must be purchased separately.

For more information on this attractive niche business opportunity, please contact Tim Carter at tcarter@praxisbusinessbrokers.com or directly at (616) 560-1080.

Location(s): MI

Asking Price: $695,000
Cash Flow: $200,000
Inventory: $100,000

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