For nearly 40 years, this successful company has provided manufacturers with important products to run their operations. Not only through the distribution of thousands of spare parts but also value added work for their clients. After years of supplying these critical parts, the owner is now ready to retire and spend more time with his family.

A major component to the company’s success over the years is in creating and maintaining long-term relationships with their customers. In a space where time is money and downtime is the loss of it, this organization has a proven track record of delivering quality products with a priority on precision, reliability and excellent customer service. By keeping customer production lines running at peak efficiency this organization has built a loyal customer base and excellent reputation.

The operation runs smoothly from a late model building located in North Central Michigan (included in the offering). The owner is assisted by four dedicated employees covering the ins and outs of daily activities.

The business has an outstanding website that gives customers insight into the company’s capabilities, and a recent upgrade has expanded ecommerce services with the benefits already being experienced.

The business has several outstanding attributes that make it a great opportunity:

• Averaged over $ 4,500,000 in annual revenue the past four years

• SDE (Seller Discretionary Earnings) exceeding $ 600,000 annually during this same period

• Excellent customer mix with the largest comprising less than 13% of annual sales

This outstanding opportunity is being offered at $2,190,000 with an attractive 2.75 multiple of SDE (SDE = seller’s discretionary income – the historical, normalized cash flow available to pay the owners and service debt). The price also includes real estate and inventory.

A typical deal for the purchase of this exceptional opportunity would be: 10% down payment ($219,000), 10 % seller note ($219,000) and an SBA loan of $1,752,000. The proposed deal reflects an impressive 3.0x average annual debt coverage ratio along with an outstanding annual post debt service cashflow of $400,000 for the buyer. The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities