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Listed by:

Neumann Associates

Cash Flow Rich Colorant Manufacturer For Sale

US
Asking Price:
$1,340,000 Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$2,600,000
Cash Flow:
$5,100,000

This Colorant Manufacturing Company is located in the New England Region.

The firm enjoys significant operating margins and documented profitability with regional and nationwide sales.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 4.4x EBITDA (2023).

A full valuation report is included and there is $180,000 in Net Working Capital plus another $267,500 in Fixed Assets included in the deal.

The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain more than $250,000 benefit in after- acquisition-debt cash flow in Year #1 – over 90% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)

Property Information

Real Estate:

Lease

Location:

New England Region

Premises Details:

This business currently operates from a 9,000 Sq. Ft. owned facility on 2+ acres allowing significant room for expansion.

Business Operation

Expansion Potential:

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 10%+ per year with higher gross margins.

Competition / Market:

The company enjoys a competitive advantage by having a number of loyal, repeat customers responsible for approximately 45% of recurring annual revenue. The company also has the advantage of its regional location allowing for quick order to delivery times, which can be crucial for its customers.

Reasons for selling:

Retirement (consulting available)

Employees:
6
Years established:
1985

Other Information

Support & training:

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.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

$0.3m Seller financing plus $0.8m Bank financing subject to buyer qualification

Furniture / Fixtures value:
$267,500 - included in the asking price
Inventory / Stock value:
$180,000 - included in the asking price