Contact: Malcolm Fenton
Email: [email protected]
Your Reference ID: MF1103116
The owner/seller of this successful West Michigan based commercial baking company has decided, due to age and dedication to another unrelated business, to part with his beloved business.
Located in a large commercial building (owned by the seller) the baking operation only requires about 15,000 sq. ft. of the total 67,000 square feet of space available. The business comes complete with over $1.1 million of equipment (original cost basis), which is in mint condition. The company employs approximately 10 part-time, non-union employees. Additional employees are available on call, if needed.
Currently, the company has averaged $350,000 in sales revenue with an average annual SDE (Sellers Discretionary Earnings – the normalized cash flow available to pay an owner/operator and service any debt) of nearly $130,000. The business is being offered at a price of $455,000, (a very attractive 3.5 multiple of the SDE). An asset sale is contemplated, including all fixed assets and goodwill. It should be noted that the owner, in expectation of retirement, has scaled back the operation to three days per week. However, the existing equipment is capable of producing upwards of $8M (22 times the current sales volume) if workdays and shifts are added. To encourage a hardworking, undercapitalized buyer, the owner is willing to stay on for a negotiated transition period and, to carry a meaningful seller note for a qualified buyer. This could be a once in a lifetime opportunity for a young person with baking industry experience.
Location(s): West Michigan
Asking Price: $455,000
Cash Flow: $130,000