100% Passive Ownership - Profitable Industrial Distributor.
For nearly 30 years this Indiana-based industrial distributor for sale has consistently generated exceptional profits by importing and selling hardware and fasteners to customers throughout the United States and Canada. Few competitors can match the Company’s prices, quality, range of products, and outstanding customer service as indicated by the Company’s extremely stable sales and cash flow year-over-year. Customers are primarily in the Manufactured Housing, Recreational Vehicle, and Furniture industries. While the present 100% owner is completely uninvolved in the Company’s day-to-day operations, he has reached an advanced age and has decided to divest of his assets. The Company is overseen by a seasoned Vice President who is aware and supportive of the sale. The Company employs six additional seasoned, full-time employees.
The Company is well-known and respected among RV and Manufactured Housing manufacturers for two key reasons: Best Products for the Price – The founder of the Company has been doing business with Taiwanese, Japanese, and Chinese manufacturers for more than 40 years. His knowledge, experience, and relationships have enabled the Company to source the optimal suppliers that can reliably deliver quality product; and 2) Value-Added Products – A significant portion of the product that the Company sells is customized and designed to solve specific customer manufacturing challenges. These innovative solutions have translated into a broad and loyal customer base, as well as healthy margins for the Company. Profitability & Stability – The Company consistently generates an average earnings of $500,000, which is equivalent to approximately 20% of revenue.
Increase Inventory Volume of Select Products – A growth-oriented new owner could greatly increase the order volumes – thereby obtaining the maximum volume discounts from suppliers. Increasing Inventory Variety – Expanding the number of products in stock would also be a good strategy to boost sales and also increase margins by allowing the Company to be more opportunistic. As it stands now, the Company must frequently buy from a competitor if the requested item is not in stock, which compresses margins. Sales and Marketing – Marketing and lead generation efforts have been minimal at best. While focusing on serving existing customers exceedingly well has been a successful strategy for the Company for many years, the economy is particularly robust where the Company is headquartered and finding new customers would not be difficult.
Owner has reached an advanced age and is divesting of assets.
The associated real estate consists of a 67,000 sqft warehouse on 7.75 acres. The facility contains 6,950 sq ft of office space. The owner would strongly prefer to sell the real estate.
Asking Price $2,500,000