Owner Financing is Available!
Business Overview:
This 40 year old OEM of Office Systems Furniture and Filing Systems, like the rest of the office furniture industry, has been hit with a 30% drop in sales due to the current economic environment. This has taken the wind out of the sail of the owner who was already preparing for retirement. With 2009 sales of $5.0MM expected, down from $7.1MM in 2008, the operation is in need of new, re-energized leadership and ownership. While imports compete with much of this industry, the systems produced by this company are customized by order and require short turn around providing the need for domestic production. Sales of $10MM could be produced with no need for additional capital expenditure. The asking price of $2.9MM includes the plant and equipment worth at least $4.2MM and all business intangibles. The plant has over 140,000 sq. ft. on 19 acres which was appraised in June 2009 at $3.3MM. The equipment has an orderly liquidation value of over $900k that includes sheet metal fabrication and powder coating capabilities. Replacement cost alone for the powder coating line could exceed $1MM. Intangibles include a customer list of over 200 dealers, GSA and 9 State approved supply contracts, Trademarks and product designs. Additional assets that may be incorporated into a transaction would include A/R and NOL. The owner seeks to sell or find an equity partner to facility his transition into retirement.
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:
140,000 sq. ft. commercial property well suited for manufacturing and warehousing.
Competition: Highly fragmented market with limited exposure from imports due to customized products and short lead times. In this highly fragmented industry where the top 3 players account for only 26% of industry sales, the opportunities for growth.
Reason for Selling:
Retirement and succession
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Resources: