For a Confidential Appointment Call: 616.317.3222

Successfully Bringing Together Business Owners And Business Buyers

More than 300 Michigan businesses sold in the past 15 years resulting in $1,000,000,000 of transaction value to Praxis business owner clients

Share this page

Profitable, Niche Mfg, Dist, and Service Business

Asking Price
OCTOBER 05, 2021

The owner of this excellent 35 year old business purchased it with a small down payment, a SBA loan and a seller note. Now, 12 years later he is debt free and boasts years of paying himself $100,000 annually. He plans to sell his business and rejoin industry in his dream part-time position. The seller’s life style change will give a new owner-operator the opportunity to repeat the seller’s successful business history.

The company is housed in an attractive, squeaky-clean, late model 13,500 square foot building located on a two acre parcel in a pleasant neighborhood of a very desirable West Michigan City. The real estate was purchased by the owner six years ago, and he will either lease it to the buyer at a favorable triple net lease at or sell it at market price in a simultaneous transaction.

The company has four, valuable, loyal, full-time employees and three part-timers who are involved in one or more of the company’s four profit centers all of which are related to commercial floor care:

  1. Manufacturing, selling and servicing a branded line of propane powered commercial floor cleaning and waxing machines
  2. Producing, selling and distributing both branded and private label lines of commercial floor cleaning chemicals and disposable products
  3. Nightly floor care for 600,000 (+) square feet of big box chain stores
  4. Operating as a warehouse (shipping/receiving) and office for a major out-of-state service business which cleans and cares for the floors of 1000 (+) big box stores throughout the country.

This non-seasonal business has thrived throughout the entire Covid-19 pandemic as large retailers have ratcheted up the need for clean floors to a “no exceptions” level. And for a growth minded buyer, this business has opportunities galore especially in chemicals and floor care.

Over the past three years (through 2022), the business has average annual revenues of $1.3 million while recording an average annual SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) of $170,000. Additionally, during the five months since the company’s 2022 July 1st price increase, annualized SDE has impressively spiked to more than $200,000.

The business is being offered without real estate for an aggressive $579,000 listing price which reflects an attractive 2.0x multiple of SDE plus $365,000 (book value) of inventory reduced in the price of the business by 33% (to $245,000) to give the buyer a running start on cash flow generation. The sale price also includes $275,000 (cost basis) of fixed assets, $365,000 (full book value of inventory), and of course the goodwill of this established business.

The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. The likely buyer would qualify for a low six figure seller note which when combined with 10% buyer cash would leave approximately $400,000 for SBA financing. After servicing debt (SBA term loan, and seller note), the buyer would have on average $100,000 annual free cash flow to pay himself.

To learn more about this attractive, growing, affordable, cash-flowing niche manufacturing-distribution-service business, please contact Mike Greengard ([email protected]) or at 616-450-0707.

Contact information

Mike Greengard
Back to business opportunities
Reference ID
Services B2B
West Michigan