High End Tent Mfg,Custom Textile Fabrication,Large Event Tent Reseller
Loyal Employees, Great Reputation, Recurring Customer Base
not included in asking price
included in asking price
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Tent Manufacturing Co and Custom Textile Fabrication Co and Large Event Tent Reseller all with Great Name Recognition and Reputations
Made in the USA
In 2018, these 3 combined companies’ generated 1.9M in revenues with earnings of 300K. The owners each work 30 hours a week which is properly adjusted for in the spreadsheet with consideration to the replacement cost for the 2nd owner BUT the owners believe that a new owner can do both of their jobs in 40 to 45 hours a week. In other words, I have added a $22,500 negative add back into the earnings and valuation which they do not believe should be there. This means that the sales price should probably be at least $60K higher than I have set it. This offering includes 3 business that are all part of the same business and can’t be separated and must be sold together. All 3 companies work in tandem with the employees, space, and materials. The 3 businesses are:
The Tent Co had revenues of 1.6M with earnings of 262K in 2018. They create and manufacture the highest quality tents and outdoor products using canvas and custom fabrics. This company has a great reputation for style, quality, and craftsmanship. As one of the leaders in the industry and with camping growing impressively, so has the revenues of this company. Glamping, outfitters, marketing agencies, big box, festivals, and campgrounds are all wanting their main products which consists of bell tents, range tents, wall tent, safari tents, and tipis. Never has there been a better time than now to get into this business. The company has been growing double digits year over year and is expected to do it again. With the addition of a new ERP system the company has been able to lean the process locally while adding contract manufacturing for the large orders.
They have 2 subsidiaries, one is a reseller of large event tents that the main company does not have the capacity to manufacturer. It met the needs of many of the company’s decade old customers that were needing event tents. It has its own website and company file. This company has been merged back into the main company as of December 31, 2018. It has broken even the last couple of years but takes care of the needs of some customers that order other products.
The custom sewing/fabrication subsidiary was started in early 2017 as a response to a large number of requests for custom sewing jobs not related to the main company. Since they had the machines and skilled labor, they quickly realized there was an open market for this type of manufacturing. The company provides custom prototype designs, small, medium, and large production runs as well as repairs for textiles of varying sizes and complexities. They found that there were less than 15 custom/prototype sewing companies like this in the USA and only 5 capable of doing what they do. The business was given no advertising budget and was never the primary business interest of the Sellers. They believe this business will prosper with a focused new owner who could give it more attention.
This subsidiary had earnings of 67K on revenues of 213K in 2018 which was just its first full year. Work finds them by customers utilizing internet search engines for custom textile design and fabrication. This company’s trending website has led to almost all of the products now being manufactured. The company provides custom prototype designs, small, medium, and large production runs as well as repairs for textiles of varying sizes and complexities. This turn-key opportunity is very inexpensive and has everything in place for it to grow. This company has been turning away jobs in order to focus on the parent company’s growth. They had no choice but to turn down work for this company. They have fixed this by moving the larger projects to Utah which allows smaller stations with more machines where they can hire more workers, do more projects, and grow this much larger.
About the Business
Contact the Seller
- Year Established:
- Number of Employees:
- Real Estate:
- Building Sq. Ft.:
- $4,195.19 Per Month
Their current lease has another 4 year but can easily be extended. They have allotted 9,589 square feet at 5.25 per square foot triple net. This has both manufacturing and office space. All the processes have been optimized by implementing a Lean strategy making the business more profitable than other sew shops. The Owners believe that an increase in Marketing and advertising would dramatically increase profitability and allow the company to grow at a rapid pace. The current space has the capabilities to handle a lot more production. We have the room to add 4-5 new seamstresses for regular shift hours, if 2 shifts are added 10-12 seamstresses can be added. The layout of the current space will accommodate this, no need to have extra costs for this. No cost of reconfiguration. We have done the heavy lifting and set up Utah to be ready for large orders and to build stock on regular items.
Manufacturing in the USA is becoming more and more popular. Overseas manufacturing has become less desirable due to higher material and labor costs, additional tariffs, long shipping times, impractical quality control, long lead times, consistent errors in products, large minimum quantities, and the language barrier. There are very few sewing operations in the US; most are expensive and extremely busy with long production times. With the consistently growing camping industry, this is a great time to be in this business.
Growth & Expansion:
The new owner will have many ways to grow each of these companies by expanding its advertising by utilizing the current resources of the employees, equipment, facility, infrastructure and inventory.
About the Sale
- Reason For Selling:
Pursuing other opportunity that allows them to work from home. More time w kids
The owners will help transition the business for 3 months or longer as available for a reasonable salary. They have employees that are qualified to handle the design aspects, negotiation the pricing, etc.
- Seller Financing:
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