Asking Price: $4,800,000 Gross Revenue: $3,067,740Cash Flow: $1,353,176 (Seller's Discretionary Earnings) EBITDA: Not DisclosedInventory: Not Disclosed FF&E: $500,000 included in asking priceReal Estate: $1,000,000 not included in asking priceShare this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
Our client Company specializes in the coating of non-woven polyester fabric used in a wide variety of industries. Their customers include any application with a need to control odor or chemicals through filtration. The sectors they serve include medical, automotive, appliances, pet, food processing, chemical and more. Although there are a wide variety of companies that manufacture filtration products, there are few who make the coated material that make them function. Our client Company excels in the area of customer service and customization. Their main competitor provides cookie cutter, off the shelf solutions in preset sizes. In contrast, this Company is the “go to” source for quality products that can be customized to achieve their customer’s unique filtration needs. The Company produces exceptional owner benefit, with above industry benchmark margins. All the coatings the Company works with are water based and contain no solvents or hazardous materials.
About the Business
Number of Employees:
Building Sq. Ft.:
The Company operates out of a 25,000 square-foot facility on over 5 acres. The facility is owned by the officers of the Company, outside the corporate entity. The building is available for purchase at $1 million, or for lease at $7,500 per month triple net. The owner’s strong preference is to sell the building with the business.
The Company has survived 35 years with no meaningful promotion and the absence of the shareholders for a decade. The Company is a cash flow machine because they’ve found a niche in a market with few players. Focus on customer needs for specialty uses and sizes makes them stand apart and has ensured their steady growth and amazing cash flow.
Growth & Expansion:
The Company’s sales are entirely reactive, rather than proactive. They do not market their products at all, except for the existence of the Company website which was updated in 2017. The website is adequate and visually appealing. It does not, however, have a news feature, blog or links to any social platforms, which undoubtedly affects their ranking on major search platforms. Customers are long term ranging from 9-20 years with a majority of the relationships being 20 years or more. Over the course of the last 8-10 years, the general manager did nothing to go after new business, yet they still grew. This business is best suited for a buyer with sales, marketing and business development experience. The manufacturing process is not overly complicated and relatively easy to learn. Therefore, this is one of the few manufacturing companies that can support someone without manufacturing experience. This acquisition is also ideal for a strategic buyer seeking to vertically integrate a material supplier.
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the seller or a business broker representing the seller. BizQuest has no interest
or stake in the sale of this business and has not verified any of the information
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