Verified

Compound Annual Growth rate of Sales of 11% from 2013 through 2018.

EBITDA compound growth rate of 65%

Focused on silkscreened and embroidered apparel for hardware chains and suppliers.

Strong employee base – General Manager has been with company 20 years.

National sales. Little penetration in Wisconsin market.

Business Summary:

Our client is a commercial silkscreen and embroidery company , founded in 1989 and incorporated in 1992.. Our client has a license to produce logo’s apparel for the franchise holders of a national hardware chain.   This provides a strong base of business which can be grown through sales to other chains, other franchisors and to the local Wisconsin/Illinois market.  Company currently at 33% capacity.

The company maintains inventory of apparel used in the hardware franchise stores and common “blanks” i.e. unadorned shirts, jackets, sweatshirts, caps, etc.

The Owner would like to retire at the end of 2019, enabling a long transition time for the new owner. The existing general manager will continue to work at the company.  The current owner would prefer a transaction that would enable the existing general manager to “earn in” to a 25% ownership stake within 5 years after purchase.

MBBI Member
Asking Price
$200,000
Gross Revenue
$3,300,000
Cash Flow
$532,000
State(s)
Wisconsin
Metro Area
Milwaukee
Is this a franchise?
No
Home Based?
No
Can the business be relocated?
Yes
Number of Employees
15
Year Established
1989
Seller Financing Available?
25% of Selling Price 7.5% Interest 5 year Amortization
Company Structure
C Corp
Facilities
Facility is leased from 3rd party
Reason for Selling
Owner retiring
Market Outlook Competition

Significant presence with National Hardware company, able to expand to other franchisors and hardware manufacturing companies.

Management Support
Current Owner can stay on till 12/31/2019
EBITDA
$532,000
Real Estate Included?
No
Equipment Included
Yes
Equipment Value
$175,000
Inventory Included?
Yes
Inventory Value
$180,000
FF&E (Furniture, Fixtures & Equipment)
$10,000
Cash Flow Comments

Cash Flow is strong with most sales paid within 20 days of shipping

Name
David Buslee