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Midwest Niche Building Supplies & Materials Company

This long established "Niche Building Supplies & Materials Company" offers reliable on-time delivery of a wide variety of quality products to contractors as well as to homeowners. The firm's ability to manufacture products that are not available anywhere else in this operation's geographic footprint has proved to be a compelling reason for contractors to choose to travel and place their orders with this company.

In the last five years revenues have ranged from $3,708,618 to $4,545,780. The Owner's Discretionary Earnings in the last five years have ranged from $500,553 to $1,152,800. The Owner's focus in 2016 on improving operating efficiencies, while eliminating unnecessary expenses is reflected in the company's 2016 financials.

The Owner expects the efficiencies already implemented will continue to improve profitability in 2017. Although January is traditionally the company's quietest month, the revenues from Jan. 1, 2017 - Jan. 25, 2017 are up 114.8%.

Two key managers are in place, overseeing various aspects of the company's day to day operations. Many of the employees have been with the company for two or more years, some for a considerably longer time. A substantial number of the employees are cross-trained, handling different roles and functions during the year.

The $2,400,000 value of the equipment included in the purchase price of the business is probably understated. While it reflects the approximate value of the vehicles, it does not address the value of the furniture, fixtures and equipment also included in the purchase of the business.

$500,000 of inventory at cost is included in the $3,500,000 purchase price for the business.

Please refer to listing ID: 5750896

Industry:  Building and Const. Services
Industry Segment:  Other Services
Geography:  United States
Asking Price:  $3,500,000
Gross Revenue:  $4,545,780
Gross Revenue Comments:  From 2016 Tax Return
Cash Flow:  $1,152,800
Cash Flow Type:  Seller's Discretionary Earnings
Cash Flow Comments:  Normalized EBITDA $1,062,800
Value of Inventory:  $500,000 (Included in Asking Price)
Value of Equipment:  $2,400,000 (Included in Asking Price)
Value of Real Estate:  $3,500,000
Year Established:  1985
Number of Employees:  23 FTE; 3PTE
Mgmt. Training/Support:  The Owner has expressed a willingness to provide training and transitioning post-closing if compensated at his regular salary level.
Reason For Selling:  Retirement
Facilities:  The sale of the Niche Building Supplies & Materials Company is contingent on the simultaneous sale of the real property and facilities housing this operation. The Purchase Price of the Real Estate is $3,500,000. Linda J. Purcell is a Licensed Illinois Managing Real Estate Broker and a Licensed Wisconsin Real Estate Broker.
Market Outlook/Competition:  The forecast for this industry is 4.4% growth annually from 2016 - 2021. The Owner has initiated cost savings on several fronts that will improve profitability in 2016 and going forward. The Owner plans to run the business as though he will own it forever, while positioning it for future growth and profitability.
Email:  lpurcell@purcellasc.com

 

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1020 W. Mallard Dr.
Palatine, IL  60067
TEL    847-358-9404     FAX    847-241-0004
lpurcell@purcellasc.com
© 2005 Purcell and Associates.
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