Medical and Commercial Plastics Distribution
Executive Summary
The long established company distributes a line of plastic components to a niche commercial and medical market with many high profile customer accounts. Gross revenues and profits have been steady the last three years with only a single trade publication used for bringing in new business. 2010 gross revenues are on pace to exceed 2009 full year results as the economy continues to rebound. Customer retention is a hallmark of the business and many accounts have become reliant on the Company as a supply partner. The Company has become well known throughout the industry for inventory availability, delivery and customer service.
Many opportunities exist to increase product lines and to add custom manufacturing to the current business model. The business is expected to draw interest from both financial and strategic buyers.
Financial Information
| 2009 Projected | 2008 | 2007 | 2006 | |
|---|---|---|---|---|
| Sales | $2,500,000 | $2,225,033 | $2,280,128 | $2,308,139 |
| EBITDA | $650,000 | $536,364 | $639,322 | $627,338 |
- 2009 projection is based on increases in year over year utility contracts in place and backlog orders as of 3/31/09.
This information is provided for discussion purposes only. No representation is made as to the accuracy of the information provided or any other information supplied. Broker encourages the Prospect to thoroughly review and independently verify to his own satisfaction, that the information provided is substantially representative of the business activity.
Deal Structure
All the furniture, fixtures and equipment used in the business will be included in the sale free and clear of all liens. A list of major items is included in the full profile on this Company.
Also included in the price will be inventory of $750,000 -$800,000 (receivables and payables will be retained by the seller at closing).
Accounts Receivable: $0
Inventory: $750,000 - $800,000
Accounts Payable: $0
Capital Inventory: $750,000 - $800,000
At the closing, should the inventory figure differ from the agreed upon amount, there will be a corresponding adjustment in the purchase price. Cash in the bank is specifically excluded from this sale and will be retained by the seller.
Other Information
5,000 square feet