Industrial Power and Motion Control Distributor

Status
Sold
Close Date
Client Number
A240
Executive Summary

The Company distributes, from their Midwest US location, industrial power transmission equipment to manufacturers, resellers and end users in the United States and to some International customers.  Authorized products and repair services include industrial clutches and brakes, hydraulic pumps and motors, pneumatic valves and cylinders, electromagnetic actuators and other related products plus two (2) specialty niche product categories.     

 

Sales are generated through the company’s network of Sales Representatives, website and trade journals.   The Company has a reputation for technical product knowledge and responsive, on site customer solutions.  Operating in a geographic area with a considerable base of manufacturing and industrial business, the company sees strength in its core regional business.  The Company is expanding into the Southeastern US region and is planning to open a second location there. 

 

This opportunity is expected to be an excellent opportunity for a strategic buyer with complimentary distribution services looking to add capabilities or as an add-on for a geographical fit.

Financial Information
Financial Metrics
2018 Projection 2017 2016 2015 2014
Sales $3,600,000 Sales $3,608,876 Sales $2,722,462 Sales $3,117,359 Sales $3,495,870
EBITDA $250,000 EBITDA $228,625 EBITDA $152,341 EBITDA $157,941 EBITDA $277,380
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization
Deal Structure
Price
Open to Offer

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 net working capital of $548,444.  Net working capital is defined as accounts receivable and inventory less accounts payable.

 

 

Accounts Receivable: $484,720

Inventory: $526,595

Accounts Payable: $462,871

 

 

 

Cash in the bank is specifically excluded from this sale and will be retained by the seller. 

 

Other Information
Location
Midwest
Ownership Type
S Corporation
Established
1996
Facilities

Facilities:                               7,500 sq. ft. free standing with dock and drive up.

                                               

Rent:                                      $6,000/mo. plus taxes, maintenance and insurance.  The seller would like to sell the real estate.  A month to month lease will be made available to buyer who does not wish to purchase the real estate.

 

Real Estate:                          Available.

Employees

7

Hours of Operation:            Monday-Friday 8:00 AM to 4:30 PM

 

Employees:                           6 full time non-union

                                                1 part time

 

Reason for Sale:                  Retirement

 

Training:                                The owner will assist the buyer during a customary transition period and may entertain a longer post-closing arrangement.