Description

This West Michigan based screen printing, embroidery and promotional products business has built and maintained solid customer relations for over 30 years by providing a wide range of products combined with excellent quality and service. The seller, approaching retirement age, has decided that after a successful decade as owner-operator of the business that it is time to pass the reins to a new owner who possesses the energy and enthusiasm to take advantage of the growth opportunities that are in front of the company.

The business has numerous revenue streams including corporate, team wear, and promotional apparel. The business is also a licensed advertising specialties company offering thousands of promotional products.

The company operates out of a leased 2,500 square foot facility (1,800 in production space, 700 in office/showroom) located in a desirable West Michigan community. The business benefits from a very favorable $1,250 monthly rent, which is only 4% of revenues. The operation has three part time employees to help the full time owner/operator. This is primarily a “b to b” business, with corporate customers, recreational leagues, little leagues, schools and the like accounting for 90% of revenues.  Customer concentration is not a problem, with the top customer accounting for less than 10% of sales.

The business has grown steadily during the past three years with 2016 revenues tracking $400,000. For the 12 month period ending August, 2016, SDE (seller’s discretionary earnings – the historical, normalized cash flow available to pay an owner-operator and service debt) was an impressive $100,000. The business is being offered for $295,000, an attractive 2.95x SDE. The seller contemplates an asset sale which has the seller retaining cash and A/R, while retiring all liabilities. The listing price includes all equipment (original cost $80,000) and inventory. A meaningful seller note will be available to a qualified buyer.

Posted Oct 17, 2016

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