for sale: manufacturing of livestock concrete water tanks ... · water agitator, and the...
TRANSCRIPT
The Firm Business Brokerage Cortney Sells, President Phone: 402.998.5288 [email protected] ID#: MAN002
FOR SALE: Manufacturing of Livestock Concrete Water Tanks, 620+ International Retail Locations
Seller will carry 15% and train for up to 2 years to strive for smooth transition
Financial Overview
List Price: $1,620,000
Gross Sales 2015: $2,476,988 2014: $2,797,597 2013: $2,884,801
Owner Profit/Cash Flow 2015: $513,923 2014: $270,930 2013: $372,007
**This business currently uses an accrual-based accounting method, therefore this Owner Profit does not include A/R
Funding Example
Purchase Price: $1,620,000
10% Buyer Down Payment: $162,000 15% Seller Financing: $243,000 75% Bank Loan: $1,215,000
Stock Sale vs an Asset Sale would ensure the ability for new Owner to maintain import/export rights. This alone is a highly sought after intangible asset.
Fully collateralized loan for an SBA, Conventional, or Equipment loan.
Description
Seller is willing to finance 15% of the Purchase Price for a qualified Buyer as well as train for up to 2 years (if desired) to ensure for a smooth transition. With a proprietary concrete formulation of 9,000 PSI, this business has carved a niche in the market for Feedlots, Cow/Calf Ranchers, Zoos, Oil Fields, and over 620 Retail Locations nationwide! The business has fully established operations in both the United States and Canada allowing for international business to successfully take place throughout hundreds of distribution sources.
The water tanks are used both commercially and in consumer sales providing the most elite water tank in North America. A new Buyer assumes ownership of needed concrete forms, tools, equipment, inventor, AR, and necessary vehicles totaling over $2.1MM in total – allowing the Bank Loan to be fully collateralized!
Business Information
Years in Business: 20+ Years in Canada & 12 Years in US
Location: United States (Nebraska) and Canada (Alberta)
Service Area: All of North America
Clients: Direct to Feedlots, Cow/Calf Ranchers, National Zoos, Oil Fields, 620+ International Retail Locations
Reason for Selling: Retirement
Employees: Fully Staffed in both locations
Seller Training Period: Seller will train and transition for up to 2 years if desired by Buyer
Current Owner’s Responsibilities: Management, Accounting and Marketing
Assets Included in Purchase: Over $2.1MM
Equipment: $425,094 ($318,231 in Concrete Forms, $18,892 in Office Equipment, and $87,971 in Tools & Equipment) *This is the depreciated value; Replacement Value
is well over $850,000
Vehicles: $87,154 (2 Cement Trucks, 2 Pick Ups, 3 Trailers, and 1 Truck Box) *This is the depreciated value; Replacement
Value is well over $150,000
Inventory Total: $509,684
Canada: $217,212
US: $292,472
A/R Total: $760,366
Canada: $270,195
US: $490,171
*Buyer will receive all A/R except for $150,000; to be used for Working Capital
Work In Progress/Purchase Orders: $300,000+
Intangible Assets: Proprietary concrete blend, proprietary water agitator, and the established import/export privilege
**amounts may vary**
Next Steps
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email [email protected].
Last Revised 1/6/2016 by ROR
- CONFIDENTIAL -
The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Brokerage, LLC.
RE: Manufacturing of Livestock Concrete Water Tanks, 620+
International Retail Locations
Seller is willing to finance 15% of the Purchase Price for a qualified Buyer as well as train
for up to 2 years (if desired) to ensure for a smooth transition. With a proprietary concrete
formulation of 9,000 PSI, this business has carved a niche in the market for Feedlots,
Cow/Calf Ranchers, National Zoos, Oil Fields, and over 620 Retail Locations nationwide!
The business has fully established operations in both the United States and Canada
allowing for international business to successfully take place throughout hundreds of
distribution sources.
The water tanks are used both commercially and in consumer sales providing the most
elite water tank in North America. A new Buyer assumes ownership of needed concrete
forms, tools, equipment, inventory, AR, and necessary vehicles totaling over $2.1MM in
total – allowing the Bank Loan to be fully collateralized!
Business Highlights
Has been servicing their clients for 20+ years in Canada and 12 years in the US
Reason for sale is retirement - Seller will provide 2 years of training & transition if
desired by Buyer
Seller’s responsibilities are Management, Accounting, and Marketing
Client Demographic: Direct to Feedlots, Cow/Calf Ranchers, National Zoos, Oil
Fields, 620+ International Retail Locations
The US Business has a fiscal year of January – December while the Canada Business
has a fiscal year of June – July; which provides for tax benefits
Included Assets
Equipment: $425,094 ($318,231 in Concrete Forms, $18,892 in Office Equipment,
and $87,971 in Tools & Equipment) *This is the depreciated value; Replacement Value is well over $850,000
Vehicles: $87,154 (2 Cement Trucks, 2 Pick Ups, 3 Trailers, and 1 Truck Box) *This is the depreciated value; Replacement Value is well over $150,000
Inventory Total: $509,684
o Canada: $217,212
o US: $292,472
A/R Total: $760,366
o Canada: $270,195
o US: $490,171
*Buyer will receive all A/R except for $150,000; to be used for Working Capital
Work In Progress/Purchase Orders: $300,000+
Intangible Assets: Proprietary concrete blend, proprietary water agitator, and the
established import/export privilege
**amounts may vary**
Valuation Details
The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the
Purchase Price of the business. The formula used is as follows:
Cash Flow x Multiplier = Price
The three-year average cash flow for 2013, 2014 and 2015 is $385,620. The prescribed
multiple for this business is 4.25. Using these numbers the resulting Fair Market Value of
the business is $1,638,885.
The List Price for the business has been set at $1,620,000
Financial & Acquisition Highlights
2015 Gross Sales - $2,476,988
o Canada: $812,612 (in USD)
o US: $1,664,376
2015 Cash Flow - $513,923
o Canada: $101,410 (in USD)
o US: $412,513
Purchase Price: $1,620,000
o 10% Buyer Down Payment: $162,000
o 15% Seller Financing: $243,000
o 75% Bank Loan: $1,215,000
Assets fully collateralize for an SBA, Conventional, or Equipment loan making it
favorable and somewhat uncommon. There are 2 community banks in which have
already approved this deal based on the strengths of the business.
A Stock Sale vs an Asset Sale would ensure the ability for new Owner to maintain
import/export rights. This alone is a highly sought after intangible asset.
Ownership & Staff
Owner is only in the office 25% of the time
GM has been in place for over 10 years and manages the manufacturing &
distribution.
Accounting staff oversees AP/AR, Payroll, etc.
Sales Associates both inbound and outside are responsible for revenue and sales
This is a turnkey operation
A second shift can be added with no additional capital expenditures required for
equipment
Product Examples
I have attached a Confidentiality Agreement to this email. If you would like to receive more
detailed financials and specific information about this business, please sign and return the
document.
The Firm currently has over 90 profitable acquisition opportunities available; so if you find
that this opportunity is not a fit for you please let us know and we would be happy to
provide you with other opportunities.