Business Overview:
This well-known Industrial Equipment Merchant Wholesaler Firm in the Southeast sells, leases and distributes a wide array of products for both the industrial and medical marketplaces. The firm enjoys significant operating margins, documented profitability, and significant owner benefit.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 2.7x EBITA (2022). A full valuation report is included and there is $150,000 in Net Working Capital plus another $1.3m in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $700,000 benefit in after- acquisition-debt cash flow in Year #1 – more than 110% return on equity investment.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Sellers will consider a mid-term consulting agreement thereafter. A well-trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
(ALL DATA BASED ON SIGNED TAX RETURNS)
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Property Features and Assets:
This business currently operates from two locations, in the Southeastern USA, with office space and storage facility.
Market Competition and Expansion:
The Company enjoys a strong competitive advantage in the service area through its many clients as well as its “Approved Vendor” type of status with a Government Department. The Company has a solid foundation and is poised for accelerated growth.
It is projected that a new owner will obtain significant additional growth by expanding the direct sales efforts towards the medical service sector including a wider geographical territory for current market segments with an investment of $300,000 - $500,000. The Company projects an annual revenue growth rate of 100% under such premise over a three-year period, maintaining the current level of gross margins.
Reason for Selling:
Retirement (consulting available).
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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