Catylist ID: #30180149
MUST SELL FAST Wholesale Siding Distributor w/ +400 Loyal Customers
Undisclosed Address, Louisiana
Business Opportunity for Sale
|Catylist Listing ID:||30180149|
|Property Subtypes:||Wholesale and Distribution|
|Building Size (RSF):||10,000 SF|
|Gross Revenue:||$700,000 (Annual)|
|Cash Flow:||$35,000 (Annual)|
Overview / Comments
Justification for Price Reduction to $500,000:
The valuation justifies a sales price of $600,000 assuming the business financials align with industry norms. However, the seller is reducing the price to $500,000 because the seller is both motivated (due to illness) and aware that the business needs working capital of about $100,000 to support the development of a sales team (1 or 2 full-time salespersons), which the owner believes would bring revenues above the $1MM threshold, a profitable level closer to the industry average of $1.5MM.
Buyer looking to reach +400 loyal customers with additional products or services for another business wanting to reach contractors. Loyal customers, on average, spend 2-5x more than new customers and represent 5/7ths of revenue.
Founded in 2013, the current owner-operator has been generating sales, on average, of nearly $700,000. The company is in the business of wholesale building materials distribution. The company is also 1 of only 2 distributors of the manufacturer of it's primary product in its market area.
Hardie siding, Mastic vinyl siding, gutters and soffit, Windows, Columns and Railing.
The owner-operator is currently 1 of only 2 employees with a driver/warehouseman hired for deliveries and managing inventory. The driver and one other key employee are willing to stay on for a year if desired by buyer.
Centrally located warehouse with 10,000 sqft plus an office space/show room leased until August 2019 priced 33% less than market rate. Office space comes with 6 desks and computers, all with lifetime licenses to inFlow Inventory.
~$700,000 Sales Annually
~Diversified set of +400 repeat customers
~Repeat customers spend, on average, 2-5x more than new customers
~Trained employees in place
~2 trucks, sump pump, & fork lift
~lease 33% under market rate until 2019
~forecast estimated revenue reaches industry average within 3-5 years
~inventory clears in about 30 days
~50% AR < 60 days old
~1 of only 2 distributors of the manufacturer of it's primary product in the area
~6 desks and computers, all with lifetime licenses to inFlow Inventory (valued @ +$4,000)
Seller is selling due to illness
|Industry Segment:||Wholesale and Distributors|
|Reason for Selling:||Illness|
|Value of Inventory Included ($):||$90,000|
|Value of Furniture, Fixtures, and Equipment ($):||$40,000|
|Real Estate Status:||Leased|
|Value of Real Estate Included ($):||$0|
Russell BernsteinMetairie, LA
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