Affordable, Profitable Mfg, Dist, and Services Biz

Not Disclosed, MI

West Michigan

Asking Price: Annual Revenue:
$550,000 $1,000,000

Services: Cleaning

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RE: Affordable, Profitable Mfg, Dist, and Services Biz Broker: Mike Greengard

Quick Facts

Asking Price: $550,000
Annual Revenue: $1,000,000
Net Profit: Not Disclosed
Cash Flow: $175,000
Total Debt: Not Disclosed
FF&E: $235,000
Real Estate: Not Disclosed
Year Established: 1985
Employees: 6
BBN Listing #: 482631216
Broker Reference #: MG1073120

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Business Overview:

The owner of this excellent 35 year old business purchased it with a small down payment, an SBA loan and a seller note. Now, 10 years later he is debt free and boasts years of paying himself $100,000 annually. He plans to sell his business and join his wife in an unrelated endeavor. The seller’s life style change will give a new owner-operator the opportunity to repeat the seller’s successful business history.

The company is housed in an attractive late model 13,500 square foot building located on a two acre parcel in a desirable neighborhood of a West Michigan City. The real estate was purchased by the owner five years ago, and he will either lease it to the buyer at a favorable triple net lease at 6% of revenues or sell it at market price in a separate transaction.

The company has three valuable, loyal, full-time employees and three part-timers who are involved in one or more of the company’s four profit centers all of which are related to commercial floor care:

1. Manufacturing, selling and servicing a branded line of propane powered commercial floor cleaning and waxing machines
2. Producing, selling and distributing both branded and private label lines of commercial floor cleaning chemicals and disposable products
3. Nightly floor care for 250,000 (+) square feet (and growing) of big box stores
4. Operating as a warehouse (shipping/receiving) and the front office for a major out-of-state service business which cleans and cares for the floors of 1000 big box stores throughout the country.

The business is non-seasonal, has no customer concentration, and has thrived throughout the entire Covid-19 pandemic as large retailers have ratcheted up the need for clean floors to a “no exceptions” level. And for a growth minded buyer, there are opportunities galore especially in chemicals and floor care.

The business has annual revenues of not quite $1,000,000 and records annual SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) of $175,000. The business is being offered for $550,000 which is an attractive 3.1x multiple of SDE. Included in the price is $180,000 of active, salable inventory and $235,000 (cost basis) of fixed assets.

The seller envisions an asset sale in which he retains cash and A/R while retiring all liabilities. The likely buyer would qualify for an $110,000 seller note which when with combined with $80,000 buyer cash would leave $360,000 for SBA financing. After paying a buyer a $100,000 salary, there is $75,000 left for the projected $60,000 annual debt service (for the combination of the SBA term loan and the Seller note) - a bank acceptable 1.25x debt coverage ratio.

To learn more about this attractive, affordable, cash-flowing niche manufacturing-distribution-service business, please contact Mike Greengard.

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Reason for Selling:


Additional Details:

  • The property is owned.
  • The owner is not 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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