This well-known Screen Printing & Embroidery Company has provided expert production and fulfillment services to a national client base (Contract Wholesale and Corporate) for over 20 years. This well-established company has experienced dependable revenue performance with increasing gross margins (currently over 32%) and enjoys significant net operating margins with documented profitability.
The company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 2.95x SDCF(ttm). A full valuation report is included and there is $35,000 in Net Working Capital plus another $100k 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 $160,000 benefit in after-acquisition-debt cash flow in Year #1 – an 80% return on equity investment.
(ALL DATA BASED ON SIGNED TAX RETURNS)
The seller has modern facilities in New Jersey totaling 12,000 SF which provides a strong base of operations for all aspects of the business and plenty of room for growth.
The Company has significant growth potential in the target market (especially corporate opportunities) – aggressive marketing efforts and a broader reach could grow top line to over $3M by 2021.
The Company enjoys a strong competitive advantage and valuable industry contracts gained through years of high-quality products, reliable service, responsiveness to customer specs – all on time and under budget. The Company has long-standing industry associations and strong buying power – with no customer concentration.
A comfortable 6-month transition period will be provided by the owner who truly wants to continue to see the business flourish. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.