Details - Information last confirmed on November 23, 2020
The Company is a custom packaging and dunnage solutions manufacturer, providing custom WIP racks, dunnage solutions (foam and plastic), plastic products (bulk containers, sleeve packs, corrugated totes, and totes), sewn bag dunnage, and steel racks. Its flagship, patented product skyrocketed in sales in 2019 before COVID put a temporary damper on sales. This product, which saves customers significant floor space in their facilities, is poised for explosive growth combined with the right buyer/investor. As a reference point, the Company’s 2019 sales were $5.8M with a cash flow of $1.7M. This is a rare opportunity to acquire a small, well-established “value stock” Company that is positioned for massive growth in sales and profits once the veil of COVID has passed.
The Company designs/engineers, prototypes, and manufactures customized packaging and dunnage solutions to serve the automotive, appliance, food service, and other industries. It also provides program management because customer service is the Company’s top priority.
The Company is overseen by an operations manager who handles all day-to-day operations, including accounting, purchasing, production scheduling, and, most notably, sales/account management. The owner has become less involved in recent years and has allowed the operations manager to take over the management of the Company. The operations manager sets the expectations of what needs to be accomplished by his employees and then lets his team do their jobs to make it happen. The owner works 25 hours per week, but this amount fluctuates on a week-to-week basis. His most valuable tasks are handling some key accounts, assisting with long-term strategic decisions, and consulting on unique/important projects.
To maintain current business performance, a new owner could work 15 to 20 hours per week in a semi-passive/passive role, allowing the operations manager to manage the Company, or be more heavily involved working hand in hand with the operations manager to grow the Business. The owner would like to sell the Company and is considering transitioning to retirement. The owner is willing to help with a thoughtful transition. The operations manager is aware of and is in support of the sale. He is looking forward to a long future with the business post-acquisition.
An ideal buyer would be well-capitalized and have an existing distribution network to help grow the Company. Buyers will be required to have a minimum of $250,000 in available liquid capital, and preferably industry experience to receive information about the Company.
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