True Servant Leadership is a far too rare quality, but this business has succeeded based on that core ideal; a great leader should serve and support individuals to flourish. Established over 30 years ago with the desire to support municipal workers in the community, the founder kept that core ideal while growing a team and company into the successful municipal service business of today. After a full career the owner is now ready to pass the torch to the next generation.

Located in a desirable, small town in southeast Michigan, the business operates from a 10,000 square foot facility on 4.25 acres. The real estate (land and building) are included in the total listing price of this opportunity.

The company currently has eleven loyal and well paid employees in addition to the owner operator. The majority of the company’s top line comes from repairs, maintenance, and service contracts performed for municipalities, but new equipment sales contribute additional revenue and present a growth opportunity (for a qualified candidate).

Now, let’s dive into the numbers. Over the past three tax years top line revenues averaged $2.5 million resulting in an annual SDE (seller’s discretionary earnings – the historical, normalized annualized cash flow available to pay the owner and service debt) of $646,941

Using an industry acceptable SDE multiple of 4.0x results in an enterprise value of $2.59 million. Adding that enterprise value with the current market value of the real estate ($1.25 million) and the cost basis of the on-hand inventory ($250,000) results in a total business valuation of $4,090,000.

The seller envisions a sale in which he retains the cash and A/R in the business at close while retiring all liabilities. He is also prepared to carry a 10% seller note for a qualified buyer.