Highly Profitable Kitchen Rental Company

Tennessee

Seller Financing Available

Asking Price:	$820,000
Gross Revenue:	$595,000
FF&E:	$166,000

Cash Flow:	$210,000
Inventory:	$29,500
Established Year:	2010

Listing ID: 2313196Listing provided by BizBuySell

BUSINESS DESCRIPTION

This well-known Commercial Kitchen Rental Company is located in the Southeast United States. The firm enjoys significant operating margins and documented profitability with a strong regional leadership presence.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 4.5x EBITDA (ttm). A full valuation report is included and there is $29,500 in Net Working Capital plus another $166,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain almost $110,000 benefit in after-acquisition-debt cash flow in Year #1 – over 65% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)

DETAILED INFORMATION

Location

Tennessee

Inventory

Included in asking price

Employees

Furnitures, Fixture & Equipment(FF&E)

Included in Asking Price

Facilities

This business currently operates from a 15,000 sq. ft. leased warehouse with office space.

Competition

The company enjoys a competitive advantage by providing commercial kitchen rental and commissary services to a large and diverse client base, from a convenient metropolitan location. This enables food service companies to optimize their profitability by leveraging this facility and avoiding the overhead of a dedicated brick and mortar location.

Growth & Expansion

It is projected that a new owner will obtain additional growth by expanding the direct sales efforts with a minimal investment of $30k. The company projects a revenue growth rate under such premise of 10% per year.

Financing

$0.2m Seller financing plus $0.5m Bank financing subject to buyer qualification

Support & Training

A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well-trained and highly qualified team will stay in place and support the new owner in all aspects of the business.

Reason for Selling

Retirement (consulting available)

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