High Cash Flowing Book Manufacturer/Printer
- Asking Price
It has been a great 75 year run for this very successful family-owned book manufacturing and printing business. The current owner, now at retirement age, looks forward to selling the company and retiring. However, the plan is to remain with the business for a negotiated period of time to oversee an orderly transition of the business which has been a model of consistent performance for over seven decades.
The business occupies an attractive 35,000 square foot facility located in a desirable community in southeast Michigan with easy access to major freeways. The real estate may be leased under favorable terms or purchased from the landlord in a separate transaction.
The business employs an experienced, skilled, non-union 29-person work force, some of whom are second generation company employees. The average employee age is well below retirement levels which secures a continuity of this desirable work force.
The company offers offset printing techniques and digital printing thus satisfying both marketplaces. Company customers include book publishers offering books on any number of topics with the most prominent subject represented by religious books making the business a prolific printer of books which will presumably not fall out of favor. Other competitive advantages exist in pricing and the multitude of capabilities provided by the wealth and variety of the company’s vast stable of machinery and equipment which has a current fair market value in place exceeding $1.8 million. Included is a new folder manufactured in Germany and installed less than one year ago at a total cost of $400,000.
Importantly the business has an unequaled commitment to quality workmanship and spot-on deliveries. Delivery dates are absolutely critical in the book printing industry as a large portion of a book publisher’s marketing budget goes for author book tours which are strategically scheduled throughout many cities over several months so the books must be in the stores when authors arrive in town. As one would expect the company’s reliable delivery schedule results in a significant amount of repeat business. The reputation of the business is in fact so strong that new customers are often generated through referrals from current customers thereby reducing the need for significant sales and/or marketing efforts. The company boasts customers throughout the United States and in several foreign countries.
Over the past five years, the business has impressively averaged annual revenues of $7.2 million and a (weighted) average annual SDE (seller’s discretionary earnings - the historical, normalized cash flow available to pay an owner-operator and service debt) of $840,000. An asset sale is contemplated with the seller retaining cash and A/R while retiring all liabilities. And for qualified buyers, a meaningful seller note will be available.
For more information on this very attractive niche business opportunity which has significant barriers to entry, please contact Steve Kandt ([email protected]).
- Reference ID
- Printing, Book Manufacturing
- Southeast Michigan