Wow! Profitable Mfg Biz w/Bldg and 85% Seller Note
This is a perfect opportunity for an aspiring, undercapitalized woodworking entrepreneur to purchase a profitable woodworking business for 15% down and 85% seller financing. No need for banking on this deal.
This 33 year old business is located in a two story, older building which (a) has 3100 square feet per floor, (b) is included in the sale price, and (c) has been remodeled by the seller a few times over the past 30 years. The facility is located in a trendy section of Lansing (MI) just minutes from the Michigan State Capitol.
This smaller business has averaged annual revenues of $560,000 over the past three years, 2018, 2019, and 2020. The average, annual SDE (seller’s discretionary earnings – the historical cash flow available to pay the buyer and service the seller note) over the same period has been $75,000. After selling his business to only the second owner in its history, the founder-owner-seller plans to help the buyer with appropriate post-close transition training after which the seller plans to retire.
In addition to the goodwill of the business, the sale includes the following:
- 6,200 square foot building which was given a written, third party market assessment of $315,000 earlier in 2021.
- $255,000 (cost basis) of machinery, equipment, fixed assets and vehicles.
- $15,000 (cost basis) of active inventory.
With a wealth of fixed assets included in the listing price, this business is “priced to sell” at $395,000. The seller is looking for 15% ($59,000) down and plans to carry an 85% ($336,000) 10 year, 6.0% seller note.
This is an extraordinary opportunity to buy a fully equipped woodworking business with annual sales exceeding $500,000, a positive cash flow, and a “cool” facility (included in the sale), all for $59,000 down and a “buyer friendly” seller note. And remember, there is no banking required on this deal.
Opportunities would seem to abound for an eager and aggressive new owner-operator starting with creating a website (the business has never had one) and contacting new potential customers in the region.
For more information on this intriguing business opportunity, please contact Mike Greengard at: [email protected]