Cash Flowing Nat'l Manufact-Distrib-Service Biz

Not Disclosed, MI

West Michigan


Asking Price: Annual Revenue:
$3,300,000 $5,000,000

Manufacturing: Chemicals


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RE: Cash Flowing Nat'l Manufact-Distrib-Service Biz Broker: Mike Greengard

Quick Facts

Asking Price: $3,300,000
Annual Revenue: $5,000,000
Net Profit: Not Disclosed
Cash Flow: $810,000
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: $500,000
Year Established: 1976
Employees: 10
BBN Listing #: 611731216
Broker Reference #: MG1040720

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Business Overview:

We are pleased to offer two separate businesses which have a long-term symbiotic relationship. The business model of both companies addresses serving large commercial customers’ floor care and janitorial supply needs. The two (unrelated) owners have specified that their two profitable, well-established businesses will ideally be sold simultaneously to a single buyer. Servicing a national customer base from its office/warehouse located in a desirable city in West Michigan, these “two businesses for one price” offer among many attributes the following highlights:

• The companies have many profit centers including:
(1) manufacturing commercial propane powered floor cleaning and waxing machines;
(2) selling, regular inspecting, servicing and repairing machines;
(3) manufacturing, selling and distributing proprietary floor cleaning chemicals and disposable products; and
(4) providing crews for regular onsite nightly cleaning/stripping/waxing of floors in nearly one-thousand big box stores throughout the country.
• Major customers are publicly held retailers that have had contracts with one of the companies for literally decades.
• The two companies, which have been in business continuously for 44 and 31 years respectively, have combined annual revenues of $5,000,000. The combined annual SDE (sellers’ discretionary earnings - the historical, normalized cash flow available to pay an owner-operator and service debt) is $760,000 plus $50,000 of rent paid to a real estate LLC (which is included in the sale).
• The combined businesses are listed for $3.3 million which includes the above mentioned late model 13,500 square foot facility on a 2.1 acre parcel – the real estate is valued at $500,000. Also included in the price is active, current inventory of $350,000.
• Over the past five years the companies have generated an average annual post debt service free cash flow (to pay an owner-operator and for discretionary expenses) of $460,000. And this is after servicing a presumed $3.0 million combined (bank financing and seller notes) debt package
• Banks should embrace both the long corporate histories and an impressive 232% debt service coverage
• Because of servicing food and agricultural industries, both businesses are excluded from any state or Federal suggested/mandated Covid-19 closures. In fact, the just completed 2020 first quarter was the strongest combined quarter in the companies’ long histories.
• The businesses project a modest combined annual capex need of less than $10,000.
• The combined companies have ten full-time employees (counting the owner of each business) and 15 three-man crews of independent contractors who are in the stores stripping, cleaning, waxing floors on a regular nightly basis.

The sellers envision an asset sale in which they retain cash and A/R while retiring all liabilities of the businesses and real estate. All fixed assets, the real estate, inventory and goodwill of the business are included in the sale price. The sellers will also offer ample transition training.

For more information on this outstanding, niche business with huge barriers to entry, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.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:

Located in a late model 13,500 square foot facility on a 2.1 acre parcel.

Reason for Selling:

Retirement

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.

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