Details

Our firm represents an industry leading distributor of custom packaging, shipping, and janitorial supplies. The business is located in Orange County, California and operating successfully for over 50 years.

Investment Highlights:
• Product offering comprises a wide variety of boxes, bags, tapes, cartons, adhesives, dispensers, envelopes, packing materials, labels, paper and related dispensing machines. Management estimates the Company offers over 100,000 unique sku’s and provides shipping services to local customers.
• Customer base mainly consists of large-scale manufacturers and industrial companies primarily located in Orange and Los Angeles counties of California.
• The Company carries specialty products and provides value added services as well as distinguishing itself from the competition via its reputation for stocking specific items, employing highly qualified and knowledgeable employees, and providing quick turnaround.
• Management estimates the rate of repeat business is 80% and the Company has developed a customer base of over 500 + active accounts.

• The Company represents many of the leading manufacturers in the industry, which enables it meet the diverse needs of its customers

Income & Adjusted EBITDA:
The Sales from August 1,2020 to July 31, 2021 (TTM) were $5,142 mm with adjusted EBITDA of $331k and Sellers Discretionary Earnings (SDE) $481k. The Company fiscal year ends January 31 and the sales in the 8-month interim period were $3.15 mm and adjusted EBITDA $255k and SDE $360k. The base year projected sales are $5.3 mm and adjusted EBITDA $383k and SDE $540k.

Investment:
The asking price is $1,750,000. The Company’s position in the market along with successful business history as well as sales growth will lead to different value perspectives among various investors. Parties interested in pursuing this transaction will be required to submit a non-binding proposal detailing the preliminary valuation of the company and suggested transaction structure.

Strategic/Synergistic Acquisition:
The established business methodologies are expected to yield growth going forward. Management sites growth through geographic market expansion as well as increased sales and marketing efforts. The Company offers an extensive customer base for a Strategic or Synergistic Company seeking an acquisition platform or to a buyer seeking growth, perhaps by consolidating other related businesses. The business is relocatable so a Buyer could benefit from substantial saving with overheard and operating expenses which would increase the net income.

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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.