New
Industrial Product Import Company
This is great opportunity for an importer or wholesale distributor to expand their product offerings and their customer base. This company has provided domestic services in component manufacturing, supply chain management, and warehousing since its founding in 2003. They assist mid-sized manufacturing companies in all steps of the offshore manufacturing and procurement process and provide just in time inventory management. Their manufacturing process includes sourcing and designing solutions: casting, forming, and machining. This company is centrally located in the Midwest which allows them to distribute products promptly and at very competitive pricing. The purchase price includes accounts receivable, inventory, and accounts payable of approximately $1 million dollars. They are an extremely lean and efficient organization.
Listed By: Mike Kendall
Background information
Reference:
0080
Year established:
2003
Reason selling:
The owner is 72 and is looking to find a transition for his clients prior to the lease expiring in 2024.
Finance
Sales:
$2,100,000
Profits:
$414,000
Profit type:
Discretionary Earnings
Operations
Equipment:
There is racking, quality control equipment, and a forklift with a FMV of $15,000 that is included in the purchase price.
Inventory:
Approximately $900,000 of inventory is included that is guaranteed by purchase orders. It is on hand in their warehouse or in transit. The customers are committed to purchasing the inventory before it ordered. The company acts as a just in time inventory solution for imported OEM components.
Premises
Square footage:
4000
Rent and lease terms:
The owner is wanting to transition this business prior to the lease expiring in September 2024. Right now, there are two businesses that occupy 8000sf of space, which includes 20% office space. The owner would recommend allowing for 4000 sf with 18ft ceilings and rack storage.
Location:
St. Louis
Opportunities
Growth:
There are plenty of opportunities to expand their territory and client base with the addition of additional sales people or manufacturing rep agreements.
Market:
They serve mid sized industrial manufacturing facilities throughout the Midwest. These firms are typically to too small to have an import department themselves, but benefit greatly from a vendor providing that service.
Price and terms
Price:
$1,750,000
Training:
The seller will train for 30 days at no cost.