Profitable, Niche Mfg, Dist, and Service Business
- Asking Price
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:
- Manufacturing, selling and servicing a branded line of propane powered commercial floor cleaning and waxing machines
- Producing, selling and distributing both branded and private label lines of commercial floor cleaning chemicals and disposable products
- Nightly floor care for 600,000 (+) square feet of big box chain stores
- 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.
- Reference ID
- Services B2B
- West Michigan