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Wow! Profitable Mfg Biz w/Bldg and 85% Seller Note

MAY 07, 2021

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:

  1. 6,200 square foot building which was given a written, third party market assessment of $315,000 earlier in 2021.
  2. $255,000 (cost basis) of machinery, equipment, fixed assets and vehicles.
  3. $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]

Contact information

Mike Greengard
Asking $395,000
Cash flow $75,000
Gross $560,000
Reference ID MG1050621
Location(s) Lansing, Michigan
Categories Manufacturing