Northeast Ohio Chemical Distribution Dual-Revenue Model
Business Description
Northeast Ohio Chemical Distribution Dual-Revenue Model
$423,261 Annual Revenue from Product Distribution and Equipment Repair Serving the Same Client Accounts
Business Description
Commercial and industrial facilities in Stark County purchase chemical products on a recurring cycle. When the equipment running those products requires service, this company handles that too. Both transactions bill to the same client. That structure produces two revenue streams without requiring two separate sales efforts, and it creates a dependency that a single-service competitor cannot match on price alone.
Equipment repair is the retention mechanism. A facility relying on this company for both chemical supply and system uptime faces real operational risk in switching vendors. That risk keeps accounts active across billing cycles and reduces the price sensitivity that distribution-only relationships carry. The financial result is $423,261 in annual revenue at a 35.3% SDE margin from a one-employee operation with no facility lease and no warehouse overhead.
Revenue has increased each year since 2009. The cost structure stays lean because the model requires no inventory on the books and no FF&E investment. A buyer acquires customer accounts, supplier relationships, 16 years of service records, and the operational systems currently supporting $149,314 in annual SDE. The $374,900 purchase price is the only capital outlay required at closing.
Business History
Chemical distribution was the original service when the company launched in Stark County in 2009. Equipment repair capability was added as the client base grew and facility needs expanded beyond product delivery. That expansion created the dual-revenue structure the business operates under today. Revenue increased each year through that development period and has continued on that trajectory.
Sixteen years of active operation produced a documented service history across commercial and industrial accounts in Stark County. The one-employee model has supported the current revenue level throughout, and the business has remained profitable without interruption across multiple economic cycles.
Potential Growth and Expansion
The service area covers Stark County. Summit, Tuscarawas, and Wayne counties are adjacent markets requiring no additional equipment or facility investment to enter.
Existing service accounts operate without annual maintenance agreements. Converting current clients to contract-based schedules produces predictable recurring revenue from accounts already generating billable work.
The current product catalog does not include all chemical lines available through existing supplier relationships. Adding product lines to current accounts requires no new client development.
One additional field technician increases the volume of simultaneous service calls. Current capacity is constrained by the single-operator model, not by client demand.
Increasing regulatory requirements around chemical handling and equipment compliance in Northeast Ohio industrial facilities create a consulting revenue opportunity within the existing client base.
Competitive Overview
Two competitor types serve chemical distribution in Northeast Ohio. National distributors operate through centralized logistics with broad product catalogs and no on-site service capability. Regional independents compete on delivery speed and price but do not offer equipment repair. The combination of distribution and repair in a single operation requires product knowledge and technical service skill simultaneously. That combination is not common among regional competitors and takes years of client relationship development to build.
Financials Summary
Annual Revenue
$423,261
Seller's Discretionary Earnings
$149,314
SDE Margin
35.3%
Asking Price
$374,900
Price-to-SDE Multiple
2.51x
FF&E
$0
Inventory
$0
Revenue Trend
Increasing year over year
$423,261 Annual Revenue from Product Distribution and Equipment Repair Serving the Same Client Accounts
Business Description
Commercial and industrial facilities in Stark County purchase chemical products on a recurring cycle. When the equipment running those products requires service, this company handles that too. Both transactions bill to the same client. That structure produces two revenue streams without requiring two separate sales efforts, and it creates a dependency that a single-service competitor cannot match on price alone.
Equipment repair is the retention mechanism. A facility relying on this company for both chemical supply and system uptime faces real operational risk in switching vendors. That risk keeps accounts active across billing cycles and reduces the price sensitivity that distribution-only relationships carry. The financial result is $423,261 in annual revenue at a 35.3% SDE margin from a one-employee operation with no facility lease and no warehouse overhead.
Revenue has increased each year since 2009. The cost structure stays lean because the model requires no inventory on the books and no FF&E investment. A buyer acquires customer accounts, supplier relationships, 16 years of service records, and the operational systems currently supporting $149,314 in annual SDE. The $374,900 purchase price is the only capital outlay required at closing.
Business History
Chemical distribution was the original service when the company launched in Stark County in 2009. Equipment repair capability was added as the client base grew and facility needs expanded beyond product delivery. That expansion created the dual-revenue structure the business operates under today. Revenue increased each year through that development period and has continued on that trajectory.
Sixteen years of active operation produced a documented service history across commercial and industrial accounts in Stark County. The one-employee model has supported the current revenue level throughout, and the business has remained profitable without interruption across multiple economic cycles.
Potential Growth and Expansion
The service area covers Stark County. Summit, Tuscarawas, and Wayne counties are adjacent markets requiring no additional equipment or facility investment to enter.
Existing service accounts operate without annual maintenance agreements. Converting current clients to contract-based schedules produces predictable recurring revenue from accounts already generating billable work.
The current product catalog does not include all chemical lines available through existing supplier relationships. Adding product lines to current accounts requires no new client development.
One additional field technician increases the volume of simultaneous service calls. Current capacity is constrained by the single-operator model, not by client demand.
Increasing regulatory requirements around chemical handling and equipment compliance in Northeast Ohio industrial facilities create a consulting revenue opportunity within the existing client base.
Competitive Overview
Two competitor types serve chemical distribution in Northeast Ohio. National distributors operate through centralized logistics with broad product catalogs and no on-site service capability. Regional independents compete on delivery speed and price but do not offer equipment repair. The combination of distribution and repair in a single operation requires product knowledge and technical service skill simultaneously. That combination is not common among regional competitors and takes years of client relationship development to build.
Financials Summary
Annual Revenue
$423,261
Seller's Discretionary Earnings
$149,314
SDE Margin
35.3%
Asking Price
$374,900
Price-to-SDE Multiple
2.51x
FF&E
$0
Inventory
$0
Revenue Trend
Increasing year over year
About the Business
- Years in Operation
- 17
- Employees
- 1
Real Estate
- Owned or Leased
- Owned
- Not included in asking price
About the Sale
- Seller Motivation
- Retirement
- Transition Support
- 4 weeks
Listing Info
- ID
- 2478412
- Listing Views
- 312
Listing ID: 2478412 The information on this listing has been provided by either 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 and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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