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


Successful Biz with Mfg, Dist, and Service Profit Centers

JULY 21, 2021

The owner of this excellent 35 year old business purchased it with a small down payment, an SBA loan and a seller note. Now, 11 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 five years ago, and he will lease it to the buyer at a favorable triple net lease.

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 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 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 $190,000. The business is being offered without real estate for $865,000 which is the sum of an attractive 2.95x multiple of SDE plus $310,000 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. The likely buyer would 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 nearly $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]).

Contact information

Mike Greengard
Asking $865,000
Cash flow $190,000
Gross $1,100,000
Reference ID MG1072121
Location(s) West Michigan
Categories Services B2B