This easily re-locatable INSTANT WIN PROMOTIONAL PRODUCT COMPANY with very high margins, very low overhead, no payroll, no inventory, huge cash flow, strong results even during these difficult economic times, is a tremendous opportunity. Think its too good to be true, then think again. This exciting 20 year old custom instant win promotional products company has excellent brand awareness and with the right advertising and marketing efforts should produce substantial profits. Sales for the Jan-Sept FYE 2010 are over $2.9 million and the seller's discretionary cash flow is over $1.595 million, which has substantially surpassed the past two prior years. The Company's promotional product line is fun, innovative, unique and has high consumer appeal. Most importantly, it also has a proven track record of creating extraordinary sales results for its clients (many over 100% sales gains), who are blue chip brands from around the world. The Company' s years of product development, R&D, technology, database, low overhead, as well as the Company's brand awareness, gives the business a substantial and sustainable competitive advantage. Because of the Company's technology and know how, the Company is positioned more like a monopoly; which enhances its profit potential. This solid, well established, proven performer is not labor intensive and because overhead is low; it is highly profitable. The business can be located anywhere in the U.S. or overseas and even buyers who have minimal sales experience can excel with this opportunity.

 Most of the current business is conducted by taking orders as a result of bi-monthly email blasts, placing ads in a certain targeted trade magazine and by past clients placing orders. Although most of the current business is done in the beverage industry, there is huge potential in the Company’s products being sold to other consumer packaged goods company’s and advertised in other industry trade magazines. The upside potential is huge !!!

Revenues are generated through sales consulting, testing, training, and executive coaching. Business is a bargain for the right buyer. The company enjoys a high referral rate. Documented selling methodologies used by hundreds of companies. Great opportunity for experienced sales and marketing professionals who are ready for business ownership. Perfect opportunity for a management consulting firm seeking to expand into the sales arena. This business is ready for growth. The company has a track record of delivering sales processes that drive top line revenues. A reputation for helping people to accomplish their dreams. Seller is willing to continue to work in the business after the sale if they are asked to do so.

This technical services company offers infrared thermal inspections, power quality surveys, energy management and electrical system mapping for hospitals, industrial sector businesses and commercial buildings. The business currently operates in 33 states with a team of certified technicians providing onsite consultation and inspection services. Their primary goals are to identify potential electrical fire hazards, extend equipment life and reduce operating costs. In addition to the technical inspections provided, the company maintains a web based data management system. Clients have direct 24/7 online access to data and can generate specific reports for their company's information. The business has consistently been profitable and is positioned for growth over the next three to five years.

This business is 'THE' corporate event, wedding planning and rental business in central Mississippi. This is an excellent opportunity for the right buyer.

This accredited medical equipment supply company provides oxygen machines, breathing equipment to manage sleep apnea and various other medical supplies to in-home Kentuckiana patients. They deliver and set up equipment, provide replacement components and refill oxygen tanks. The company has grown at a double digit rates for the last three years and continues to grow through their referral system with sleep clinics and other medical providers.

Our Client is an established distributor of specialty products marketed through catalog sales, internet sales, and some retail sales. The current owners are the second generation to own and operate this successful business since its inception in 1963. The Company’s attention to serving customers with quality products and services over the years has built a large customer base of institutions, organizations, and individuals that will provide continued sales for many years. The Company markets its products each year by mailing over 175,000 catalogs to its target customers. The Company maintains a website with all catalog items displayed. These items can be purchased online via a secure checkout system that accepts Visa, MasterCard, American Express, and Discover card transactions. The Company operates out of a leased facility located on a main thoroughfare leading out of the city of Birmingham. The facility is approximately 4,500 sq ft with a product showroom, office space, stock room, and shipping area. The lease is assignable; there are four years left on the lease; and there are two additional five year options. Rent payments are approximately 3% of the annual sales. The Company has a strong history of sales and profits that has built financial stability over its many years of operations. The Company’s balance sheet shows strong cash position that indicates wealth generation for a future owner.

EXECUTIVE SUMMARY-LEAD SHEET

CONFIDENTIAL MEMORANDUM----INFORMATION SUPPLEMENT

A PROFITABLE SPECIALTY EQUIPMENT DUSTRIBUTION BUSINESS FOR SALE POSITIONED FOR FUTURE SUCCESS. 

IN December 2016, IBISWorld Industry Report 42512 stated the following regarding

WHOLESALE TRADE AGENTS and BROKERS in the US: 

"This Industry is Positioned to Earn Increased Commissions Due to Larger Commission Volumes". 

“SDCF” -A BUSINESS BUYERS BEST FRIEND !!!

PROJECTED AVERAGE SELLER’S DISCRETIONARY CASH FLOW is $750,000

AND OTHER IMPORTANT FINANCIAL METRICS BENEFITING THE PURCHASERS.

BUYER’S PROJECTED ROI IS 71.78% AND THE TOTAL PROJECTED "SDCF" AMOUNT

COLLECTED IN 15 YEARS EQUALS

$11,250,000.

Question:

HOW CAN THE SELLING PRICE AND PURCHASE PRICE FOR A BUSINESS BE $2,800,000

AND ACTUALLY COST THE BUYER(S) BETWEEN 23% AND 12% LESS AS FOLLOWS"

$2,156,000 (23% PRICE REDUCTION)

OR 

$2,476,600 (12% PRICE REDUCTION)

 -

Answer:

THIS IS A UNIQUE BUSINESS AND ALMOST 77% OF THE PURCHASE PRICE

IS TO BE PAID WITH “BEFORE-TAX-DOLLARS”

FIT Benefits Are Between: 

$323,400 (Assumed 15% FIT Rate) AND $840,840 (Assumed 39% FIT Rate) 

Most Buyer’s and their professional advisors will agree that the acquisition

price for this business is stated fairly, especially since

almost 77% of the Purchase Price is to be paid with

 “BEFORE-TAX-DOLLARS”

Primarily Due to FIT TAX DEDUCTIONS CREATED FROM AMORTIZATION of Intangible Assets.

FOLLOWING IS A SUMMARY OF WORKING CAPITAL ASSETS INCLUDED IN THE SALE

Business Working Capital Assets Help to Reduce the Buyers’ Financial Risks Substantially, Compared to Most Other Businesses for Sale Such as Those with Large Dollar Amounts of Fixed Assets. This Business Has Working Capital Assets of $1,116,038 which is Equal to Approximately Forty (40%) Percent of The Entity’s Total Selling Price Consisting of the Following:

1.   Near-Cash Assets of $645,936.

2.   This Business Uses a Large Amount of Business Working Capital that is Provided by

Internally Generated Interest-Free “Ever-Green-Loans”.

3.   Relatively Few Businesses the Size of this Business Operate with Such a Small Amount of Fixed Assets, Less than $20,000.

STATEMENT OF FINANCIAL OPERATIONAL METRICS AND OWNERSHIP BENEFITS

This business generates strong profits with only a minimal reinvestment required to operate the business. This is a full service Industrial material handling company with a solid reputation for customer service. The Company was formed in 2005 by the current owners who have operated the business the past eight years. The Company enjoys a good reputation in the industry and in its area of operation.

Beneficial attributes of this business include some of the financial and operational benefits enjoyed by selected successful and important internet based businesses such as Google, Apple and a growing list of others. Financial and operational benefits for this type business include the following:

1. Flexible business operation model that may be expanded to other lucrative and growing markets in almost any location, especially in the United States.

2. Minimal investment in inventory and customer accounts receivable and, when required, only then for a short time period.

3. Relatively low total operational cost.

4. New business relationships may be developed in targeted markets with customers and vendors without the need for extensive travel and within a reasonably short time period, especially within the continental United States.

RECENT OPERATIONAL PERFORMANCE METRICS FOR THIS BUSINESS: 

a. 2013 Commission Income and Owner's Discretionary Cash Flow (ODCF) increased over 2012 by 38% and 15%, respectively.

b. 2014 Commission Income decreased by $58,000 or 6.4% from 2013 and Owner's Discretionary Cash Flow (ODCF) decreased from 2013 by the same dollar amount and percentage; result is only a minimal one-year decline.   

c. 2015 Commission Income and Owner's Discretionary Cash Flow (ODCF) both increased over 2014 by 15%, respectively.

d. d. 2016 Commission Income and Owner's Discretionary Cash Flow (ODCF) decreased by $437,000 or 45%. The Sellers attribute this downturn to the anxiety and uncertainty of the United States Economy in 2016 as created by the National Presidential Election and related activities.

e. 2017 Commission Income Year-To-Date at September 30 exceeds the full Year 2016 by $300,000. The full year 2017 amount may prove to be the one of best year of the past five years. Also, such an achievement will assure that SDCF will be within the same successful range, a splendid recovery from the 2016 election year.

 f. Selling Price is $2,800,000 and assets included in the sale includes $646,000 of Working Capital Current Assets such as Cash Deposits, Customer Accounts Receivable and Inventory. Except for year 2016, SDCF has been increasing during the last five plus years. 

CONCLUSION:

The above list of recent Operational Performance Metrics for this Business reveals the management’s flexibility and the fact that operating ratios were consistent and helped to define the low level of fixed operating costs this business enjoys. The performance of this business in year 2017 is commendable and, also, illustrates that the business is flexible and the financial and management capabilities of the Current Owners/Sellers.

THE ACQUISITION OF THIS BUSINESS PRESENTS A BIG OPPORTUNITY FOR A QUALIFIED BUYER.

Descriptive Comments: The business was established by the Sellers in 1974. The business is engaged in teaching their students the Art of Barbering and Hair Design. Most students fund their training with assistance from Pell grants and other types of government guaranteed student loans. The business is well organized and functions efficiently whether or not the owners are present. This business is by far the largest organization of its type in the region. The business consistently earns a high percentage of profit based upon sales revenue. The business is in a growth industry that is virtually recession proof. The business offers a strong growth opportunity for a qualified owner. The reputation of this business and its market position is well established. This is a great opportunity for the right buyer or investor.

This high margin and profitable business manufactures and distributes products for the commercial dry cleaning and laundry business. Their specialty manufacture of products and processes for the dry cleaning and wet cleaning of leather and suede is the only one of it's kind in the industry. International customer base provides a steady stream of repeat business. Outstanding opportunity for growth. Seller is now passionate about outside interests and looking for the type of buyer that will put new energy into a 37 year family business.

This Company is an established distributor of shelving, office furniture, and fixtures used in pharmacies, hospitals, retail stores, and industrial businesses. In addition to supplying the shelving and fixtures, the Company provides a turn-key service that includes the following: • Design and space planning specialists design the layout of the facility using their AutoCAD systems. • Specification of any and all components needed in the project. • Ordering of the components and staging them in their warehouse for delivery to the work site. • Fabrication of any custom shelving and cabinets needed in the design. • Delivery of the components to the job site. • Installation of all ordered components to the client’s satisfaction using their experienced installation crews. This company is having a good year this year even though the economy is weak. Medical related businesses are still fairing well.

BACKGROUND

Established Oil & Gas Field Hardware and Auto Parts Supply Business that has operated profitably in the same area since the 1950’s; over 60 years. The owner is ready to retire and to place this opportunity in control of a qualified and knowledgeable buyer.

This business has never advertised extensively, but has relied solely upon building a large and dependable repeat customer base via verbal recommendations from satisfied customers. Even today this business still does not have a website!

This business is profitable and profit margins comparable favorably to prior years.

BUYER’S OPPORTUNITY

This opportunity can be expanded geographically by implementing new advertising and marketing techniques utilizing the internet. The company's present core customer base is in Texas and surrounding states. The utilization of new internet advertising and marketing methods and techniques will allow this business to reach active operators in the Oil and Gas Fields of Texas and adjoining states as well as other potential customers in more distant locations. Customers seeking a reliable source for Auto Parts can also be reached via internet advertising and marketing techniques.

Millions in revenue dollars have been generated by this business in prior years by the owner  a small number of well trained and loyal employees.

This business needs new management versed in the application of today’s internet advertising methods and marketing techniques.

THE PRICE IS RIGHT

$637,562 of the $2,400,000 selling price is for attractive and appropriate real estate used by the business and $1,335,468 of the selling price is for current assets (Accounts Receivable and Inventory) that constitute liquid working capital for the business.

Well Maintained Furniture Fixtures and Equipment included in the sale constitute only 2.5% of the selling price or $54,620.

Intangible Asset Value included in the sale is $637,562 and is fully deductible as Amortization Expense over 15 years for Federal Income Tax purposes

BUYER MAY BE IN POSITION TO PAY ALMOST $700,000 OF THE ACQUISITION PRICE WITH “BEFORE-TAX-DOLLARS” AND ACHIEVE A CASH TAX SAVING BENEFIT OF BETWEEN $121,500 and $315,900.

Buyer(s) will be in position to pay almost $810,000 of the acquisition price with “Before-Tax-Dollars” ($344,360 for depreciable Buildings, Equipment  and Intangible Assets; a Substantial Cash FIT PAYMENT Reduction Benefit of between $121,500 and $167,910.

ONLY QUALIFIED BUYERS NEED TO REPLY.

Each buyer will be required to do the following:

1.     Sign and return to the Broker our Confidentiality and Warranty Agreement, and

2.     Provide to the Broker a copy BUYER’S Signed Financial Statement that substantiates their ability to pay the $220,000 down payment with their own personal funds and to qualify for a bank loan guaranteed by the Small Business Administration (S.B.A.) or similar loan for the unfunded Purchase Price of approximately $1,760,000.

NEED MORE INFORMATION"

For more information regarding this excellent business offered for sale for the first time ever, contact Zack Tannery, the exclusive business broker by calling 972-644-8508 or 1-800-736-6055

KEY FINANCIAL METRICS THAT BENEFIT ALL BUSINESS BUYER(S):

This company sells, installs, services and maintains water softening and purification systems. It is a reputable 50 plus years’ well established business that has never before been offered for sale. It boasts a strong and steady cash flow with an enormous customer base. It is a turnkey operation that requires no special licensing with minimal training in order to succeed. The company enjoys steady referrals from satisfied customers through word of mouth and no longer requires a lot of expensive advertising for growth. It has a long time experienced knowledgeable staff with potential management. The business shows increasing sales and is positioned for further growth in its present location. It can be easily duplicated in other locations. This company is an excellent candidate for acquisition by someone whom is motivated to easily expand the business or simply maintain the operation as is and enjoy the excellent profits with little effort. It has a great highway location and store frontage; the real estate is also available for purchase by a qualified buyer.

Strong SDCF allows down payment, financing options and compensation package to be flexible.*****THIS BUSINESS IS LENDER PRE QUALIFIED FIVE STAR BUSINESS*****