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We are pleased to represent an outstanding marketing/communication business (and so much more) with a giant cash flow. This family business (established in 1972) has been managed by the same family member for the last 30 (+) years. He now looks forward to retiring after transitioning his very successful business to a new owner-operator.

The company averages annual revenues exceeding $4.0 million with seller’s discretionary earnings (SDE = the historical cash flow available to pay an owner-operator and service debt) of more than $1.1 million annually. The business is located in two adjacent, attractive late model buildings (each has 14,000 square feet) on a five acre campus just minutes off a major interstate highway in a suburb of a desirable Michigan city. The real estate (buildings and land) is included in the sale price.

So what does a business with only 13 full-time employees (all of whom are long-term, loyal and non-union) do to generate its outstanding top and bottom lines? Well, the flippant answer is everything. In broad terms, the company designs and implements marketing and brand building programs for both large and small businesses. Its two largest clients are truly world class organizations who have been loyal and active clients forever. No A/R issues here.

A partial list of the “everything” business activities in which this company is involved include (in no particular order):

• Event planning and execution
• Political campaigns
• Establishing new and building established brands
• Orchestrate “everything” from grand openings to golf tournaments to new product roll-outs to trade show appearances to sports programs to well, you get the idea…

And speaking of “ideas,” one might say that the company manufactures ideas while making money for both its clients and itself.

During Covid times, many of the company’s clients have asked this business to design and implement new awareness communication programs which often include custom printed material (which the company designs and produces) and/or custom promotional items (which the company designs, manufactures, and distributes).

The company also has a large fulfillment department for it clients. Products are designed, manufactured and then warehoused in a climate controlled environment with fulfillment activity per client specifications which range from hand delivery to overnight shipping services to everything in-between. The company even designs and manages clients’ company stores on a remote basis.

This high cash flowing business, with a great customer base of both big and small clients, is being offered for $5.65 million which is comprised of the sum of:

1. 3.75x SDE of $1.1 million = $4.1 million
2. $150,000 of inventory of promotional finished goods items
3. $1.40 million of real estate (two buildings and property)

A typical SBA deal with 10% buyer cash ($565,000), a matching amount for a seller note (to a qualified buyer) and a $4.5 million SBA term loan would result in an annual free cash flow (after bank and seller note debt services and after paying the buyer a $150,000 salary) of $600,000.

And with several new large projects coming on board in 2021 (4th quarter) and in 2022, the company expects to continue flourishing.

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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.