Investment-Grade Med Device Mfgr Suited to Strategic or Pvt. Equity Buyer seeking 35-50% ann. growth
Asking Price:   $3,500,000Inventory:   $400,000 **
Gross Revenue:   $3,200,000 (comments below)Real Estate:   $1,000,000 **
Cash Flow:   $700,000 (comments below)FF&E:   $1,750,000 ++
++ included in the asking price         ** not included in the asking price
Gross Revenue Comments: Highly profitable. Strong long-term customer base
Cash Flow Comments: Ranged between 550 - 700 k over past 5 yrs.
THIS LISTING REQUIRES HIGH CONFIDENTIALITY- BROADBRIDGE NON-DISCLOSURE AGREEMENT (FORM ATTACHED TO THIS AD) MUST BE USED v.s BizQuest NDA. FINANCIAL PRE-QUALIFICATION OR EVIDENCE OF FINANCIAL SUITABILITY ALSO REQUIRED. PERSONAL FINANCIAL STATEMENT (FORM ATTACHED) OR BANK REFERENCE LETTER FOR INDIVIDUAL BUYERS. PRE-QUALIFICATION WITH OFFER REQUIRED FOR CORPORATE OR PRIVATE EQUITY BUYERS. PLEASE CONTACT KRIS KAVELARIS / BROKER WITH QUESTIONS.

COMPANY is a national contract manufacturer of Medical Devices for OEM’s whose products require Certified Clean Room production. Its specific production processes are: Rotary Diecutting, Paper Converting, Adhesive Converting, Printing, Laminating, Punch Press, Plastic Injection Molding, Assembly, and Packaging. NAICS Codes include -
33911 - Medical Equipment and Supplies Manufacturing
32222 - Coated and Laminated Packaging Paper and Plastics Film Manufacturing
COMPANY provides the Product Research and Development (R&D) service of taking an identified application need or product idea from conception through mass production. This R&D capability is a huge competitive advantage.
COMPANY sells solutions. Its Value Proposition is to offer the best 1) Technically engineered product packaging. 2) Customized roll converting presses and production processes that eliminate steps and cost, and improve quality. 3) Certified Clean Room environment; the Company’s entire facility is a clean-certified, vs. specific rooms.
ABOVE 3 POINTS are supported by: A) Production and Quality Assurance Processes and Techniques that are documented and religiously observed B) Structured Business Processes that are likewise documented and observed. C) Zealous attention to each customer’s service / delivery / inventory management needs.
SELLER seeks strong pricing and margins in return for Company’s customer focus and quality performance.
CUSTOMERS are Original Equipment Manufacturers (OEM’s) who sell their OEM products through various distribution channels to the end-user marketplace. These customers engage contract manufacturers such as the Company to produce their products. Customers have their name / brands put on the products during the manufacturing process.
MANAGEMENT TEAM is mature, well-rounded, fully capable of driving the Company forward post-sale and achieving the significant growth Seller firmly believes is available to be had. Entire management team is geared to solution selling. They spend significant time seriously experimenting with existing as well as new production processes.
GROWTH POTENTIAL - Company is the size that it is because Seller has focused on making money and isn’t motivated by sales volume. Other companies at this age may be larger in sales, but few exceed its profitability.
SELLER is convicted that the Company can be grown to three to five times (3-5x) its current size in as many years. This translates to $9 - $15 million in sales in three to five (3-5) years.
SELLER STATES based on experience that the present production equipment can support a 300% revenue growth with only modest investment in ancillary equipment (about $115,000) by going to permanent full-time second and third shifts. This translates to the present production equipment supporting an approximate $9 million in sales volume.
OFFERING MEMORANDUM, available upon request, sets forth detailed specific growth steps / tasks / investment Seller would undertake if he were of a mind to keep vs. sell the Company and to focus on growing it at the rate set forth above.
About the Business
Year Established:1993
Employees:40 full time - 30 part time
Relocatable:Yes
Facilities:Entire building (production and office) is a 17,000 square foot Certified Clean Room / Facility. Present production equipment can support a 300% revenue growth with only modest investment in ancillary equipment (about $115,000) Key Production equipment is highly re-engineered (see patent comments). Seller believes will support an outside written appraisal of $1.5 - $1.75 million.
Market Outlook and Competition:MARKET OUTLOOK - While Seller is respectful about the current economic climate he is strong in his belief that 2009 annual sales will not be less than 2008. He forecasts that they will be up 10%, and that fiscal 2010 will be up 20% over 2009. Note that these forecasts are for the sales effort that the Company currently puts forth and NOT the results Seller believes are attainable with aggressive marketing, advertising and selling. COMPETITION - Seller states forthrightly that other companies / competitors can certainly get the end result of what the Company does, but to the best of his knowledge they don’t produce the way the Company does because they can’t. COMPANY has developed one-step on-press in-line rotary die-cutting, inserting, wrapping / sealing and related production processes. These processes reduce two (2) or three (3) production processes to one (1) step. These are protected by three (3) issued Patents and two (2) Patents applied for. COMPANY’s capabilities provide measurable quality-increase and cost-decrease advantages. Management does not know of other competitors who have these capabilities. RESULT - CUSTOMERS frequently don’t have the Company compete against anyone. They often simply asked the Company to discuss / explore how they would produce the
About the Sale
Reason For Selling:Seller is 60 years old. He has worked very hard all his life, has done very well for himself, and he now wants play-hard time. Company is positioned for significant growth. Market is well-able to provide that growth. Seller’s management team is pushing him hard to support their desires to go out and achieve it. Seller believes that in fairness to the Company, its employees and its customers it’s appropriate to hand off Company to those who, at their current stage in life, want to put forth the requisite hard work, dedication, and hours to continue the Company’s success, and to reap the rewards of their effort.
Attached Files - Attachment Disclaimer
Medical Packaging Company NDA - Please use this Confidentiality and Non-Disclosure Agreement versus the BizQuest stock NDA. Note that it is a PDF. You may fax it back, or scan and attache it to an email. This agreement is also available as a Microsoft Word document. You may electronically sign and return this document format via email. Please contact Kris Kavelaris for a copy. Contact information - Land Line 262-369-0787. Fax 262-997-1515 Email Kris@BroadbridgeInc.com 28 KDownload
Personal Financial Statement - This Personal Financial Statement is available as an Excel Spreadsheet. Please contact Kris Kavelaris for a copy. Contact information - Land Line 262-369-0787. Fax 262-997-1515 Email Kris@BroadbridgeInc.com 43 KDownload

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Business Listed By
Kris J. Kavelaris  |  Broadbridge, Inc.
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Segment: Medical Device Manufacturing

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