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Jun 19, 2020 — This well-known Food Services and Distribution Firm provides a wide array of meal preparation and delivery to a diverse non-residential client base throughout the NJ region. The firm enjoys significant operating margins, documented profitability and significant owner benefit. This business currently operates from a conveniently located 10,000 sq. ft. leased warehouse with office space.
The company enjoys a strong competitive advantage in the service area through its many State and Local contracts as well as its “Approved Vendor “status with the NJ Department of Agriculture. The firm 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 to service a wider territory and new client segments with a minimal investment of $250,000. The company projects an annual revenue growth rate under such premise of 20%+ per year with higher gross margins.
The company has been fully reviewed and internally appraised at 4.3x SDCF (ttm). There is $800,000 in Net Working Capital plus another $850,000 in Fixed Assets included in the deal, and by implementing the proposed deal structure an owner operator will obtain more than $500,000 benefit in after-acquisition-debt cash flow in Year #1 – over 50% return on equity investment.
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very 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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