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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

Successful Biz with Mfg, Dist, and Service Profit Centers

Asking Price
OCTOBER 05, 2021

The owner of this excellent 35 year old business purchased it 12 years ago. Now, after years of strong results he is debt free and has enjoyed regular W-2 income of $100,000 annually. To complete his “life plan,” 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 business 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 lease it to the buyer at a favorable triple net lease averaging approximately 5.0% of sales.

The company has three, 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 contract floor care for 250,000 (+) square feet (and growing) of big box stores
  4. Operating as a warehouse (shipping/receiving) and back 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 nightly floor care.

The business has average annual revenues of $1.1 million and records an average annual SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) of $200,000. The business is being offered without real estate for $865,000 which is the sum of an attractive 2.75x multiple of SDE plus $315,000 of active, salable inventory. The sale price includes $275,000 (cost basis) of fixed assets, all 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. A solid buyer should qualify for a low six figure seller note which when combined with a comparable amount of buyer cash would leave $645,000 for SBA financing. After servicing debt (SBA term loan + seller note), the buyer would have on average $100,000 annually left for paying 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