Business for Sale Overview:
This fully-equipped franchise sign business is located in a very prime location in MD. Ownership has operated the business successfully for over 10 yrs and are now looking ahead to retirement.
This represents an attractive opportunity for the right buyer(s):
Affiliation with a highly rated sign franchise organization with many locations throughout the U.S.;
A well-established, profitable business in a territory with a dense population of small to medium-size businesses and several government offices;
An active customer list of more than 1,000 local and regional businesses and government agencies (375 placed orders in 2009 and 850 have placed orders in the past three years);
An attractive location in a modern, upscale business park, easily accessible from anywhere within the five-mile radius that generally defines their exclusive territory;
Large 2800 square foot facility ideally suited to sign-making operations with very favorable lease terms;
Substantial potential for further profitable growth.
Through its affiliation with a national franchise, the Company has built up a good relationship with a reliable group of suppliers, with whom it has established favorable credit arrangements.
The operation is fully equipped with state-or-the-art equipment
The Company has an excellent staff.
The Company produces a range of one-of-a-kind or multiple computer-generated signs and banners made from cut vinyl graphics available in a wide range of colors. The Company also specializes in a wide variety of other sign media, including banners, electronic signs, box signs, channel letters, custom graphics, custom logos, directory signs, individual letters and more.
The Company serves a wide range of clients, including real estate agencies and property managers, major corporations and franchise chains.
Revenue has been in the range of $500,000 - $550,000 for the past three years, even in the teeth of the current recession. The business is well-positioned to expand when the economic recovery begins. The owners are seeking an acquisition price of $325,000.
www.litchfieldgroup.net
For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.
Property Features and Assets:
The Company occupies a spacious facility, including a very large enclosed bay in the rear. This gives them the ability to apply lettering and wrap-around designs to commercial vehicles in a clean, dry environment, regardless of the weather.
The Company leases 2800 square feet of space in a business park for $8 per square foot plus CAM, for a total of about $10 per square foot. The current lease, which began in March 2009, runs for three years plus an option for three additional years. The utilities average $350 per month.
Market Competition and Expansion:
Competitive Environment:
Most of the Company’s business comes from customers within a five mile radius (its exclusive territory within the franchise – although they can take a business referral from anywhere.) There are 2 competitors in the area who provide only minor competition to this business. This particular company has set itself apart through the strength of the franchise brand and through its long-standing reputation for superb quality and customer service.
Growth Potential:
The Company’s operating space and specialized equipment can support twice the current revenue level – that is, up to $1 million annual revenue. Because little or no additional investment in these and other overhead categories would be required, each additional dollar of revenue could deliver 30% – 40% profit margin directly to the bottom line.
The Company has established a solid reputation for quality and service in delivering signs for medium and large businesses in its market area. If the new owner were to bring on one or two other effective outside sales persons, the ownership believes revenue growth in the range of $100,000 per year would be readily within reach.
Finally, the Company can obtain the capability to accept orders through their web site, something the present owners have not yet put into practice. The new owner could capitalize this option, as another promising avenue for growth.
Reason for Selling:
Retirement
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.