Very Profitable, Multi-Faceted B to B Biz - SOLD

AUGUST 25, 2021

It has been a great run for the founder-owner-seller of his very successful 13 year old business, but now he plans to sell his outstanding company and retire after transition training for the new owner-operator.

And what a company he has to sell…there are multiple profit centers incorporating manufacturing, distribution, sales, installation and service, all of which are on a B to B model.

The company has two full-time, experienced, respected and well-compensated salesmen who work on projects often years in advance of the installation date. This long lead time creates a virtual insurmountable barrier to entry for potential competitors.

The product is specified by architects and designers and is destined for municipal parks, colleges, high schools and middle schools. The products range in complexity from large, intricate commercial playground apparatus to aluminum bleachers to everything in-between – picnic shelters, climbing walls, scoreboards (indoor and outdoor), scoring tables, basketball & volleyball systems, goals (soccer and football) to name several.

Sales penetration includes new and recurring customers throughout several upper Midwestern states. Sales are also generated by the company’s team of in-house inspectors who help customers comply with State mandates for annual inspections. When issues are found, corrections can be addressed by the company’s service techs or lead to purchase orders for replacement product. There is no customer concentration.

The business operates out of an 18,000 square foot company-owned, late model, attractive building (included in the sale) in a suburban city adjacent to Lake Michigan. The business employs 12 people of whom several work from remote offices or spend several days a week on the road inspecting and/or servicing installations.

Now the financial information: The business has averaged over the past four years annual revenues of $3.3 million and nearly $700,000 of annual SDE (seller’s discretionary earnings – the historical, normalized cash flow available to pay an owner-operator and service debt). The company has ample late-model equipment and vehicles so the successful buyer will have minimal capex requirements post-closing.

The intended asset sale includes the enterprise value of the business, all fixed assets, rolling stock (trucks), approximately $80,000 of inventory, and the real estate (with a recent market value of $750,000). The seller plans to retain cash and A/R while retiring all liabilities. In addition, for a qualified buyer, the seller will plan to carry a low to mid-six figure seller note.

The listing price is $3.7 million which when coupled with a combined total of $750,000 of buyer cash and seller note would result in an annual cash flow (AFTER debt service) of nearly $400,000 for the buyer. For more information on this outstanding, high cash flowing multi-faceted, niche business, please contact Mike Greengard ([email protected] or 616-450-0707.