It has been a great 17 year run for the founder/owner of this outstanding manufacturer of soft goods for the hospitality industry; however, he has now reached the age at which he wants to transition his business to only its second owner. His decision could be your opportunity.

The business is located in a very attractive 35,000 square foot air conditioned facility in southeast Michigan. The real estate is such that there is ample space to grow the business while maintaining a single shift operation. The addition of a second shift gives an aggressive buyer the opportunity for significant growth. The real estate, worth an estimated $2,000,000, is owned by the seller, and it can be leased under favorable terms or purchased in a separate transaction.

The company has 45 very dedicated, skilled, well-trained, non-union employees. Pleasant working conditions plus an emphasis on solid human resource management has resulted in relatively low turnover in an industry often characterized by heavy turnover. In addition, the company boasts newer equipment which is in excellent condition. Future CAPEX needs are projected to be minimal.

Customers generally make deposits at the time of ordering and most of the products are shipped COD. As a result, the company carries minimal accounts receivable which obviously enhances the cash flow of the operation.

In 2015, the business recorded over $700,000 of SDE (Seller’s Discretionary Earnings - the historical, normalized cash flow available to pay an owner-operator and service debt) on revenues of $4,750,000. The revenue outlook for 2016 (with less than 80 days to go) is projected to significantly exceed $5,000,000. The business is being offered for $2.9 million, an attractive 4.1x SDE and .55x projected 2016 revenues. The listing price includes an estimated $300,000+ (value in place) of machinery and equipment. And, a meaningful seller note could be available for a qualified buyer.

Posted Oct 15, 2016

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