Value Priced, Motivated Seller, Strong Cash Flow

Not Disclosed, MI
Wayne County

Detroit Metro Area


Asking Price: Annual Revenue:
$270,000 $650,000

Services: Advertising & Marketing


Request More Information
Contact the Seller

RE: Value Priced, Motivated Seller, Strong Cash Flow Broker: Steve Kandt

Quick Facts

Asking Price: $270,000
Annual Revenue: $650,000
Net Profit: Not Disclosed
Cash Flow: $138,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 1995
Employees: 5
BBN Listing #: 25431216
Broker Reference #: SK1012020

Email, Print & Share

Request More Information
Contact the Seller


Business Overview:

If you or a family member is looking for an established b to b business with sane hours, few employees, seller transition training, a modest purchase price, and a six-figure cash flow, then read on as this could be the opportunity for you.

It has been a great 25-year run for the founder-owner-seller of this successful multifaceted business which specializes in retail awards, engraving & promotional products, and the like, but it is now time to transition his company to only its second owner-operator.

The business has numerous revenue streams: plaques (21% of sales); trophies (13%); promotional products (7%); medallions (6%); acrylic awards (7%); engraved plates (4%); name badges (6%) with any number of other categories comprising another 35% of sales. And all this with only three full-time and one part-time employee to help the seller.

Operating out of a leased 2,150 square foot building (1250 in retail space, 900 in storage space) on a well-traveled road in a desirable community in SE Michigan, the company enjoys a very favorable $2,150 monthly rent, which is only 3.0% of revenues. The company embraces a b to b business model with corporate customers, charities, and schools accounting for nearly 80% of revenues. There is no customer concentration as the top customer for the past 3 years accounted for just 12% of revenues. Online sales account for 16% of revenues while walk-in retail sales account for less than 12% of revenues. And as would be expected from this successful business, there are lots and lots of repeat customers.

Competition is scarce, with only two other stores within a 20-mile radius, and they compete in only a handful of the products offered. There is no single true competitor.

Let’s talk numbers: the business, which has averaged annual revenues of $650,000 over the past five years, is being offered for $270,000 which is a very attractive 1.95x multiple of the average annual $138,000 SDE (seller’s discretionary earnings – the historical cash flow available to pay an owner-operator and service debt), recorded over the same five-year period. The seller is contemplating an asset sale which has the seller retaining cash and A/R, while retiring all liabilities. The listing price includes all equipment, inventory, the company’s excellent website, and of course the goodwill of the business. A meaningful seller note will be available to a qualified buyer, and as part of the purchase price, the seller will offer extended transition training to suit the buyer’s needs.

For a buyer with just a $40,000 down payment, debt service (SBA banking + seller note) will approximate $32,000 annually, leaving as much as $100,000 for an annual salary to the new owner. What’s not to like? For more information on this attractive, successful, niche business opportunity, please contact Steve Kandt (steve@praxisbb.com).

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Property Features and Assets:

Residing in a leased 2,150 square foot building on a busy street in a desirable community in Southeast Michigan

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 not a franchise resale opportunity.

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!