Value Priced, Motivated Seller, Strong Cash Flow-SOLD

If you or a family member is looking for an established b to b business with sane hours, few employees, seller transition training, a modest purchase price, and a six-figure cash flow, then read on as this could be the opportunity for you.

It has been a great 25-year run for the founder-owner-seller of this successful multifaceted business which specializes in retail awards, engraving & promotional products, and the like, but it is now time to transition his company to only its second owner-operator.

The business has numerous revenue streams: plaques (21% of sales); trophies (12%); promotional products (10%); medallions (4%); acrylic and glass awards (7%); engraved plates (3%); name badges (10%) with any number of other categories comprising another 33% of sales. And all this with only three full-time and one part-time employee to help the seller.

Operating out of a leased 2,150 square foot building (1250 in retail space, 900 in storage space) on a well-traveled road in a desirable community in SE Michigan, the company enjoys a very favorable $2,200 monthly rent, which is only 3.0% of revenues. The company embraces a b to b business model with corporate customers, charities, and schools accounting for nearly 80% of revenues. There is no customer concentration as the top customer for the past 3 years accounted for just 12% of revenues. Online sales account for 16% of revenues while walk-in retail sales account for less than 12% of revenues. And as would be expected from this successful business, there are lots and lots of repeat customers.

Competition is scarce, with only two other stores within a 15-mile radius, and they compete in only a handful of the products offered. There is no single true competitor.

Let’s talk numbers: the business, which has averaged annual revenues of $650,000 over the past five years, is being offered for $270,000 which is a very attractive 1.95x multiple of the average annual $138,000 SDE (seller’s discretionary earnings – the historical cash flow available to pay an owner-operator and service debt), recorded over the same five-year period. The seller is contemplating an asset sale which has the seller retaining cash and A/R, while retiring all liabilities. The listing price includes all equipment, inventory, the company’s excellent website, and of course the goodwill of the business. A meaningful seller note will be available to a qualified buyer, and as part of the purchase price, the seller will offer extended transition training to suit the buyer’s needs.

For a buyer with just a $40,000 down payment, debt service (SBA banking + seller note) will approximate $32,000 annually, leaving as much as $100,000 for an annual salary to the new owner. What’s not to like? For more information on this attractive, successful, niche business opportunity, please contact Steve Kandt ([email protected]).