Profitable Mid-MI Distributor of Safety Products

OCTOBER 02, 2023

We are pleased to offer for sale this excellent business opportunity: a 50-year old “b to b” safety equipment distributor serving hundreds of long-time customers from its headquarters in a central location in Mid-Michigan. With a broad customer base, this business supplies manufacturing, contracting, construction, municipalities, utilities, and general service industries (and more) with the equipment and supplies to keep their customers OSHA and ANSI compliant and of course keeping their customers employees safe. The current owners look forward to retirement after a successful, post-close transition period for a new owner-operator of this established and cash-flowing business.

Occupying a leased, single tenant 7,000 square foot building, you will find an organized warehouse holding inventory comprised of well-known brands such as 3M, 3M-DBI-Sala Fall Protection, Dupont Tyvek, and Honeywell Safety to name a few. Partnerships with such well-known industry vendors provide both common use and specialized safety equipment that have been the backbone of this company's success. The business model does not end when products leave the facility; support and service of equipment keeps customer satisfaction high and return business a priority.

The layout of the facility makes delivery and order fulfillment a breeze, while office space on the front of the building allows an owner-operator to remain close to the business. This space can be leased at a favorable market rate with flexible terms offering additional benefit to a buyer.

The business boasts a diverse customer base with many large customers and scores of smaller ones. Annual revenues over the past several years have averaged more than $2.5 million. Over the same period, the business has averaged an impressive annual SDE (SDE = seller’s discretionary earnings, the normalized cash flow of the business available to pay an owner-operator and service debt) of $300,000.

The business is being offered for $1.2 million. The listing price is based on an aggressive 3.0x SDE multiple and less than 50% of average annual revenues. Included in the listing price is more than $200,000 of active, saleable, cost-basis inventory, all fixed assets, transition training, and the goodwill of a business which has a 50-year history of successful operations.

The sellers envision a cash free – debt free asset sale in which the sellers keep cash and A/R while retiring (at or before close) all liabilities. For more information on this value priced, must-see business opportunity, please contact Ryan Johnson.