Envelope Manufacturing with 85% Recurring Clients

Boston, MA

Service Area: National, 70% in New England

Asking Price: Annual Revenue:
$2,450,000 $5,170,212

Manufacturing: Publishing

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RE: Envelope Manufacturing with 85% Recurring Clients Broker: Cortney Sells
Owner Financing is Available!
Purchase Price: $2,450,000 12.5% Buyer Down Payment: $306,250 12.5% Seller Financing: $306,250 75% Bank Loan: $1,837,500 A 12.5% down payment of $306,250 returns $441,867 in the first year after debt payments!

Quick Facts

Asking Price: $2,450,000
Annual Revenue: $5,170,212
Net Profit: Not Disclosed
Cash Flow: $866,210
Total Debt: Not Disclosed
FF&E: $532,500
Real Estate: Not Disclosed
Year Established: 2002
Employees: 25
BBN Listing #: 408234398
Broker Reference #: MFG002

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Business Overview:

This envelope manufacturing company has 635 active clients throughout New England with a 25,000 sq. ft. plant 20 minutes from downtown Boston! This essential business was established in 2002 and has 85% recurring clients. Their solid customer base is comprised of database directories, financial, insurance, and banking industry clients, real estate & law offices, and small print shops that can’t handle large size or volume. Services include envelope sales (65%), printed forms & letters (25%) and packaging of sales guides, employment contracts, and business packages (10%). Of envelope sales, 40% is manufacturing and 60% is wholesale printing and imprinting. Their $1.2M in assets includes $525k in A/R, along with 4 pieces of converting equipment, 4 offset printers, 8 color cold web printers, 2 digital envelope presses, and 3 folders. Their team of 25 includes 3 client service managers, 1 HR and accounting, 1 driver, 2 assistants, and 18 production workers; once a job is started, turnaround to completion is 7-8 working days.

There is a spike in sales from September to November each year, due to increased direct mail marketing for the holiday season. At other times of the year, the business has a balanced client base for direct mail marketing and financial services businesses and well as printer envelope converting. Their service area includes national clients, but 70% of their clients reside in the New England area.

Selling at a low 3.25 multiple, a 12.5% down payment of $306,250 would return $441,867 in the first year after debt payments – a 144% return on investment. Growth opportunities include expanding the second shift to increase capacity, continuing strategic acquisition plan that the business has followed over the past several years and engage in direct selling efforts rather than work through reselling merchants and brokers.

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Property Features and Assets:

Building: 25,000 square feet facility

Market Competition and Expansion:

Expand second shift to increase capacity, direct sales rather than broker marketing, continue strategic acquisition strategy

Reason for Selling:

Partner retiring

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.

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