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Exclusive Caterer & Event Planner for Portland

Home meal delivery & virtual event planning amidst COVID-19!

CASH FLOW
$671,657

Specifications

  • Price
    $2,100,000

  • Revenue
    $12,238,065

  • Cash Flow
    $671,657

  • Location
    Portland, Oregon

  • Service Area
    Primarily tri-county area in Oregon

  • Intangible Assets
    Leading caterer in the market, leadership team with decades of experience, deep connections in the community

  • Equipment
    $2,019,126

  • Employees
    2 owners + 16 core staff, including a Warehouse Manager, Executive Chef, VP of Operations, Operations Manager, Sales Manager & sales staff, Marketing Manager, IT/Facilities Manager, Floral Director, & accounting staff

  • Reason for Sale
    Retirement planning

This leading and exclusive catering business in Oregon has successfully diversified their services in recent months to include home delivery of safely prepared and packaged meals and organization of virtual events for their clients.  Their experienced and diverse management team includes a top-notch Executive Chef, a Vice President of Operations, an Operations Manager, IT/Facilities Manager, Sales Manager, Warehouse Manager, Marketing Manager, Sales Manager, and sales & accounting staff. The owners currently handle business management, creative direction, and sales. The company is based out of a leased 40,000 sq. ft. building which includes a production center, warehouses, offices, and an integrated and newly renovated 5,000 sq. ft. event space. The company’s $2.2M worth of assets includes a fully equipped 5,000 sq. ft. kitchen with 4 walk-in fridges, banks of ovens, deep fryers, grills, tables, and production equipment. They also have an extensive warehouse filled with décor, props, and rental furniture, and an inventory of place settings, china, flatware, and glassware for 5,000 people.

Along with meal delivery services and virtual event planning,  the team provides a vast array of event services for corporations and nonprofit organizations, including full-service catering, venue selection, event planning & design, floral & décor, staff organization, coordinating with vendors, and complete event management from beginning to end.

With exclusive contracts for certain event spaces in the area, along with being on the preferred caterers list at a number of other venues, solid relationships are in place with several organizations throughout Oregon & Washington; adding more partnerships would lead to tremendous growth.

Business Highlights

  • Year Established: 2001
  • Location: Portland, Oregon
  • Service Area: Primarily tri-county area in Oregon
  • Services: Full-service catering, planning, design, & floral for corporate, nonprofit, & social events
  • Clients: Corporations and nonprofit organizations
  • Lease: Building 1: 40,000 sq. ft. building: production center, warehouses, offices + 5,000 sq. ft. event space; Building 2: 6,100 sq. ft. event space; Building 3: 5,000 sq. ft. event space
  • Reason for Selling: Retirement planning, ownership group looking to divest
  • Personnel: 2 owners + 16 core staff, including a Warehouse Manager, Executive Chef, VP of Operations, Operations Manager, Sales Manager & sales staff, Marketing Manager, IT/Facilities Manager, Floral Director, & accounting staff
  • Seller Training Period: 6-12 months
  • Growth Opportunities: Increase online meal delivery services
  • Current Owners' Responsibilities: Owner 1: Business management, finance; Owner 2: Creative Director, sales

Financial Highlights

  • List Price: $2,100,000
  • Gross Sales:
    • 2019: $12,238,065
  • Cash Flow:
    • 2019: $671,657
  • Assets Included in Purchase*
    • Equipment: $2,019,126: Fully equipped 5,000 sq. ft. kitchen w/ 4 walk-in fridges, banks of ovens, deep fryers, grills, tables, production equipment; Extensive warehouse w/ décor, props, rental furniture, place settings, china, flatware, and glassware for 5,000 people + computer & office equipment
    • Vehicles: $188,103: 2019 Ford Transit Connect, 2019 RAM Promaster Cargo Van w/ Lift, (2) 2013 Ford E250 Vans, 2013 Fort Transit, (2) 2006 Dodge Sprinter Vans, 1999 Isuzu, 1994 Chevy Van
    • Intangible Assets:  Leading caterer in the market, leadership team with decades of experience, deep connections in the community

*amounts may vary, assets may be depreciated, replacement cost, or fair market value 

Cash Flow Analysis

Description of Financial StatementTax Return
Accrual
Tax Return
Accrual
Tax Return
Accrual
Tax Return
Accrual
Notes
2019201820172016
GROSS SALES$12,238,065$11,477,040$11,448,075$11,877,405
Net Income Shown on Financial Statement$6,057$20,907$151,461$30,854
ADDBACKS
Compensation to Owner$492,583$369,379$330,374$542,771
11% Tax on total W2 Salaries$54,184$40,632$36,341$59,705
Depreciation$76,932$166,145$116,743$175,605
Interest$30,863$25,807$29,509$32,783
Auto Expense$20,400$20,400$20,400$13,750
Owner Meals$8,678$12,643$7,742$7,833
Officer Bonuses$0$83,425$75,000$45,500
Amortization$37,923$37,923$37,923$44,590
Replacement/Retainage$-175,000$-175,000$-175,000$-175,000To keep/replace CEO ($95k) and Creative Director ($80k)
Consultant$102,597$136,850$137,997$0Discretionary - not needed onward going
Key Man Insurance$16,440$16,440$15,618$13,152Non-onward going
TOTAL ADDBACKS$665,600$734,644$632,647$760,689
Seller's Cash Flow = Total Addbacks + Net Income$671,657$755,551$784,108$791,543
Profit Margin5.49 %6.58 %6.84 %6.66 %
Profit Margin: 5%

Clients

  • Corporations
  • Nonprofit Organizations
  • Future Brides

 

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Full-service catering
  • Event planning
  • Event Design
  • Floral Services
  • Venue Selection
  • Event Management
  • Vendor Coordination
  • Staff Organization
  • Food & Beverage Management

Personnel

  • 2 Active Owners (3 Silent Partners)
    • Owner 1: Business management, finance
    • Owner 2: Creative Director, sales production
  • 1 Executive Chef
  • 1 VP of Operations
  • 1 Operations Manager
  • 1 Warehouse Manager/Beverage Manager
  • 1 IT/Facilities Manager
  • 1 Sales Manager
  • 2 sales staff
  • 1 Financial Controller/Accountant
  • 2 Accounting Staff: A/R and A/P
  • 1 Floral Director

Plus, pool of core wait staff of 100-200 people as needed who sign up through a computerized system

Growth Opportunities

  • Hit the ground running after COVID; already the dominant market position means it could thrive even more after the field has been cleared post-COVID
  • Capitalize on the already solid foundation with major institutional venues in the area
  • Increase online meal delivery services

Funding Example

Purchase Price:                             $2,100,000

15%Buyer Down Payment:             $315,000

20%Seller Financing:                      $420,000

65%Bank Loan:                             $1,365,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $7,830.

Bank loan 10-year term at a rate of 6.25% equals a monthly loan payment of $15,326.

After business expenses and loan payments, a buyer with a 15% down payment of $315,000 would retain a profit of $393,781, which results in a 125% return on investment in the first year.

A lender is required to have a minimum 1.25 coverage ratio for any business loans extended. At a proposed purchase price of $2,100,000 with the terms listed above, the coverage ratio is 2.42.

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.

Purchase Price:

$2,100,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.