High Cash Flowing Marketing Communications Business

APRIL 10, 2023

It’s been a great 23 year run for the owner and founder of this outstanding marketing communications company with a huge cash flow. The owner looks forward to retiring after transitioning his successful business to a new Owner - operator.

This is an excellent opportunity for a financial buyer searching for a high cash flowing business or an existing company in the industry wishing to add revenue and income through a strategic acquisition. This low overhead business has few employees and operates out of a 700 square foot facility in a desirable West Michigan Community. Lease cost is less than 1% of total revenue.

The company has an outstanding website that gives customers insight into the capabilities of the business which include one stop shopping for all of their marketing and business communication needs. These include, among others, the design and implementation of programs for large and small businesses alike along with creative, technical and strategic services. The operation has several revenue streams including direct mail, labels, packaging services, sign printing, point of purchase displays and promotional items. In addition, the business offers warehousing capabilities and order fulfillment services.

The owner has increased profitability by expanding services for his network of loyal and repeat customers. The company has a reputation for providing quality product on time at a competitive price. With several large projects coming on board in 2023 the company expects revenue and net income to continue growing.

Now for the best part. The company has experienced a impressive 150% increase in revenue since 2019 with sales of nearly $3,000,000 in 2022. Annual net income has increased proportionately during this same period. Seller’s Discretionary Earnings (SDE = the historical cash flow available to pay an owner –operator and service debt) in 2022 exceeded $500,000 providing ample cash flow to service debt and pay himself.

Using an SDE multiple of 3.7x the business is attractively priced at $1,894,000. The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. For a qualified buyer, the seller will carry a six-figure note.

A typical deal for the purchase of the business looks great: $190,000 (10 % of the purchase price) buyer cash, a 15% seller note, and the balance financed by an SBA loan. This would leave over $270,000 annually for a buyer to pay himself.

The owner has agreed to a lengthy transition period to meet the buyer’s needs. In addition, an extended training period can be negotiated.

If you are searching for a high cash flowing, b to b business with sane hours, few employees, seller transition training and an outstanding cash flow, this could be the business for you. For more information on this outstanding opportunity please contact Steve Huntley at 616 902 0898 or [email protected]