Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1071519
The founder-owner-seller of this successful, attractive, and value-priced 32 year old manufacturing business has now reached retirement age and, as such, looks forward to transitioning his business to only its second owner-operator.
Located in a desirable mid-Michigan community, the business and its 19 non-union employees operate in an attractive 50,000 square foot late model facility which offers manufacturing, warehousing, office, and showroom under one roof. 2/3’s of the employees are seasonal, working the eight temperate months. The real estate, owned by the seller, may be purchased in a separate transaction for an attractive combination of price and terms. Alternatively, the buyer may enter into a very favorable lease (at less than 2% of revenues) which will satisfy SBA banking requirements.
The company manufactures low-maintenance, durable vinyl products designed for outdoor, residential use. The company has extensive product offerings including lines of privacy fencing, decks, porch railings, gazebos, arbors, trellises, skirts, and the like. There is even equine fencing. And the company is one of just a few in the industry which also fabricates custom fence and porch railing designs.
With annual sales averaging $4.0 million, the business gets the preponderance of its revenues by selling to wholesalers located within 150 miles of its plant. The balance of the business is retail sales coming from a combination of word-of-mouth, the company’s showroom and/or its attractive website. There is no customer concentration – the largest customer represents less than 10% of revenues.
Over the past three years the business has had an average annual SDE (seller’s discretionary earnings – the normalized cash flow available to pay an owner-operator and service debt) of $325,000. The business is priced at $1.395 million, a 4.3x multiple of SDE. The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. In addition to the goodwill of the business, the buyer will receive approximately $1.265 million (cost basis) of active inventory and $515,000 (cost basis) of serviceable machinery/equipment. The combination of these assets represents $1.78 million of value which is $400,000 greater than the $1.37 million listing price. In addition, the seller will offer ample transition training (as part of the purchase price), and for a qualified buyer, the seller will also carry a low to medium six figure seller note.
To learn more about this value priced, well-established, and cash flowing manufacturing business, please contact Mike Greengard (firstname.lastname@example.org).
Located in a desirable mid-Michigan community, in an attractive 50,000 sf late model facility.
Location(s): Mid Michigan
Asking Price: $1,395,000
Cash Flow: $325,000