Cash Flowing Dealer of Professional Food Service Equipment
| Asking Price: | $2,000,000 |
| Gross Revenue: | $4,147,458 |
| EBITDA: | $542,407 |
| Cash Flow: | $542,407 |
| Inventory: | $350,000 |
| Established Year: | 1988 |
Profitable business with excellent reputation
We are delighted to present this attractive opportunity to own a Mid-Michigan business with over 30 years’ experience providing food service professionals with all their commercial kitchen needs. This full line food service dealer has built a sound reputation over the years with top notch experience in design, sales, and service. Now looking towards retirement, the sellers of this long-standing, cash-flowing business are looking to transition to new ownership.
Whether you are looking to upgrade your kitchen equipment, beverage & bar products, or smallware’s this business has it all from trusted brands. Add to that a weekly delivery option for your recurring disposable and janitorial needs it’s no wonder this company has been serving Michigan successfully for decades. Speaking of delivery, customers can trust their quality products are delivered with care and expertise thanks to the in-house delivery capabilities.
Showroom, retail, warehouse and office space are all conveniently housed in a well maintained 7,000 sqft building just off a highly trafficked interstate available for lease. New ownership will find great value in the experience of 4 full-time employees paired with ample transition training being offered from current ownership.
Now let's talk numbers. Sales over the past three years have averaged in excess of $4,000,000 annually, while normalized annual SDE averaged $542,407 over the same period. This business is attractively priced at $2,000,000 which is the sum of three key components: (1) a 3.0x multiple of annual SDE ($542,407 x 3 = $1,627,220) plus (2) Roughly $350,000 of salable cost basis inventory and (3) The goodwill of the business and enterprise value of the business, which includes an experienced staff, fixed assets, and equipment.
The sellers anticipate an asset sale in which they retain cash and the minimal A/R while retiring all liabilities. The buyer receives all furniture & fixtures, all fixed assets, inventory, and lease to conveniently located real estate. In addition, the sellers will hold a meaningful six figure seller note for a qualified buyer.
