Profitable, Fully Equipped, Value-priced Manufacturer
MARCH 26, 2025
The wife of the owner this nicely profitable, smaller (annual revenues of $555,000) wood commercial furniture manufacturing business has accepted an impressive new position in industry which requires her relocation to Florida. In order to join her in her move south, he must sell his attractive business prior to moving. His problem could be your opportunity.
The business is located in real estate owned by the seller which has recently gone under contract to an unrelated third-party buyer who is not interested in the manufacturing business as he has other plans for the real estate. So, what about the business? The owner is offering the business as a going concern (enterprise value, inventory and all fixed assets required to operate the business) for an all-in price of $350,000 which includes the owner paying machinery movers to relocate everything in the 7,500 square foot facility to a facility provided by the buyer.
The business transaction includes nearly $250,000 of value in place of inventory, machinery and equipment. The business generated $555,000 of revenues in both 2023 and 2024 while recording in each of the same two years $135,000 of annual SDE (seller’s discretionary earnings - the free cash flow of the business available to pay an owner-operator and service debt). And 2025 year-to date revenues and SDE are each up a whopping 45% over the same 2024 period.
The business boasts:
• An attractive website
• Seven loyal, well-trained, non-union employees
• One talented lead man who is capable of managing the business
• All equipment is in excellent condition and all inventory is current
But I hear you asking how can I tell my banker I have to relocate the business at closing? Won’t that disqualify me from a commercial or SBA bank loan? The short answer is “yes;” however, the seller is offering the following bank free transaction:
• The “all-in” price of $350,000 reflects an attractive 2.6x SDE multiple (2.6 x $135,000 = $350,000)
• With the buyer making a $50,000 cash payment at closing, the seller will carry the $300,000 balance of the purchase price in a 5.0% seller note with a seven year amortization kicking in after a six month stand-by period during which no payments are required. The seven years (84 months) of payments will require monthly payments to the buyer of $4,200.
What’s not to like? To learn more about this intriguing, cash-flowing business opportunity, please contact Mike Greengard anytime: mgreengard@praxisbusinessbrokers.com or 616-450-0707.
Asking: $350,000
Cash flow: $135,000
Gross: $555,000
Reference ID MG32625
Categories: Machine Shop, Manufacturing
Contact information
Mike Greengard
mgreengard@praxisbusinessbrokers.com
616-450-0707