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Get Started HereNew Lower Price from 14M to 12.1M. The Owners will Stay and keep 35% equity lowering the down payment from 12M to 8M with a 40M Goal in 3 Years and 100M in 5 Years.
After 1 ½ years without trade shows which is where 80% of their sales have originated, two employees attended a small trade show the weekend of 8 26 21. They also have started production again for the first time in over a year on 2 spray vaps and one of their newly designed extraction machines. They have two more trade shows this fall that they will be attending including what is the largest trade show in 2021 in mid-October. They also have started the hiring process of a marketing company to handle online sales, Vlogs, Pod Casts, which should result in a higher number of less costly sales going forward in a non-trade show dependent way. This will include new exposure to video demonstrations for their 42,500 Instagram followers with the ability to order their products online or schedule appointments to see in person demonstrations. They didn’t know this existed until recently. The trade shows returning combined with this new products and new online marketing/sales should have them back to record numbers again soon.
This business designs, manufactures, and sells their patented extraction, separation, evaporation, distillation, and isolation equipment which can be used for the Cannabis (Marijuana and Hemp) industry, biopharmaceuticals industry, and many products that use essential oils like lavender for soap, etc. Most of their sales to date have been the Cannabis industry but that is because they don’t have any sales people and these are the conferences the owners have attended. This advanced technology equipment processes with maximum efficiency and consistency in product quality with cost reduction in mind. The company is 6 years old and had revenues of 8.6M in 2019 with 4.5M in earnings which is a profit margin of 52% with no sales force and designing and building the equipment themselves. As of July 19th, the sales price has been lowered to $8M and they will keep 35% of the company which makes the company worth $12.1M. Once you submit the NDA link below, you will get an email with the data room which has a video interview, walkthrough, and projections for 2022 and 2023 indicating revenues of $40M plus based on a capital infusion by the buyer of an estimated $1.5M to move their location to a bigger facility, to buy parts to increase production, and to hire 2 sales people and train them. The 2 owners will both stay 30 hours a week for a salary plus a bonus while they will keep their 35% equity and continue to grow the company. They also just restarted production of their equipment with the conferences coming back in September. Keep in mind that this company had grown steadily while expanding their product lines, revenues, profitability, and market share UNTIL COVID happened.
Design and Manufacturing Extraction Company
The 2019 revenues were 8.6M with 4.5M in earnings. 2018’s revenues were 5.4M with 2.7M in earnings. The company started from zero in 2014. The company has grown with no debt except short term payables, has had no bad debt, and 100% of signed contracts have been executed. The company has had been very consistent growth until 2020, making the impact of Covid easier to quantify for this company. The combination of the addition of 2 new products representing a leap forward in the industry, increasing recognition and reputation, an increasing amount of states and people in those states benefiting from CBD, and the slow return to conferences will easily mean that 2022 will show record revenues and earnings. In fact, if they find the buyer they are looking for, they predict that the company will have 42M in revenues with over 30M in earnings within 2 years of the closing. The data room also has a pro-forma that the owners spent a lot of time to try to get right.
Their processing equipment is normally sold after an in person/on-site demonstration, which yields a closing rate of 37%. They are frustrated by the shutdown of conferences and travel because they had just developed two exciting new products which have the potential for high revenue with solid margins for years to come. The new equipment’s accuracy, quality, and efficiency will complement their existing product lines; solidifying them as market leaders. Keep in mind that this company was growing at an average of 50% per year until COVID.
The company has a significant following and customer base with over 42,000 Instagram followers and customers in 21 states and multiple countries. They are confident of strong growth, given their new products, strength of existing products and states yet to fully legalize. An additional 29 states should become fully legal in the next couple of years, which indicates they have yet to see full market potential. Additionally, with, their knowledge, demonstration equipment, they could process cannabis in their facility with revenues between 2.2M/yr. (crude oil) to 15.6M/yr. (d8 acetate), which is in addition to equipment sells and manufacturing. While they have historically marketed to the cannabis industry and it is the largest market for their equipment, there are other untapped and very lucrative markets (i.e. essential oils(botanicals), laboratory sciences, education, pharmaceuticals, and beer/wine industry). Their products can be used in many other industries and would be the most modern and accurate extraction and evaporation equipment in many industries. They believe their ability to accurately create an exact formula to industry standards should be mandated throughout the world. In fact the one of their patented products has the ability to efficiently perform liquid-liquid separation on a many different types of solvents. Lastly, the owners have proved their equipment demand, ability to stay ahead of the market with new products, and overall business viability, but want support to go to the next level so they can spend more time on design which is what they enjoy and what will take this company to a much higher level.
The owners have spent years of developing high tech products and services in the medical, pharmaceutical, aerospace, and nuclear industries, these best friends developed and patented a best in class evaporation system, which included never before seen spray technology.
They have earned a reputation as an industry leader and believe that the company would have done over 12M in revenues in 2020 without COVID AND without their new products. With conferences and travel returning in the 4th quarter of 2021 they are confident that their new and established products will pick up where 2019 left off in late 2021 leading to a bigger 2022 than they would have had in 2020 without COVID. They believe their new products will increase both revenues and profitability substantially.
This company focuses on using “Made in America” components and locally owned and operated suppliers, whenever possible. The high end quality combined with the creativeness, expertise, and genius of the owners is why they have become industry leaders so quickly. They have already designed and built their next generation of equipment and the owners are willing to stay for up to two years after the closing to assist with the success of the company. This is a “Fun” business to own that is growing and the Owners want to make sure the new owner(s) realize the companies full growth and success potential.
A total value of the company with the 8M for 65% of the company has been lowered to 12.1M which is now only 2 3/4 times their 2019 earnings and is a great price after adding products to increase their 2019 revenues when the conferences and travel return in September of this year.
Thank you, Jeff.