This well-known Food Services and Distribution Firm provides a wide array of meal preparation and delivery to a diverse non-residential client base throughout the NJ region. The firm enjoys significant operating margins, documented profitability and significant owner benefit.
The company has been fully reviewed and internally appraised at 4.5x SDCF (ttm). There is $800,000 in Net Working Capital plus another $850,000 in Fixed Assets included in the deal, and by implementing the proposed deal structure an owner operator will obtain close to $400,000 benefit in after-acquisition-debt cash flow in Year #1 – 40% return on equity investment.
(ALL DATA BASED ON SIGNED TAX RETURNS)
This business currently operates from a conveniently located 10,000 sq. ft. leased warehouse with office space.
It is projected that a new owner will obtain significant additional growth by expanding the direct sales efforts to service a wider territory and new client segments with a minimal investment of $250,000. The company projects an annual revenue growth rate under such premise of 20%+ per year with higher gross margins.
The company enjoys a strong competitive advantage in the service area through its many State and Local contracts as well as its “Approved Vendor “status with the NJ Department of Agriculture. The firm has a solid foundation and is poised for accelerated growth.
To step back after many years
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.