Return To Opportunities List

Opportunities

Fulfillment and Printing Company Specializing in Medical

Niche Business with Established Client Partnerships and Pipeline!

CASH FLOW
$345,743

Specifications

This Niche fulfillment and printing company has established relationships with multiple nonprofit, medical, and dental practices to handle a majority of their print marketing and informational pieces. They have over 300 current clients and offer services including the fulfillment, printing, and preparation of informative packets for education seminars and conferences. They also offer complimenting services including branding, marketing, and print distribution (direct mailers, fundraising campaigns, and print on demand for additional resources). This mid-sized establishment has been servicing and creating business partnerships within the Omaha area for over 30 years. They continue to receive accolades for their customers service and work quality. This marketing and printing firm has the capability to handle a wider variety of services than firms bigger and smaller than their current size. Thanks to their skilled and established staff of 15 FT, 3PT, and 1 1099 workers they are able to remain flexible on jobs that bigger companies would not be able to accept and they are skilled enough to be more efficient and reliable than smaller firms. Thanks to their excellent work ethic and reputation, many of their top clients have been operating with them for 5 or more years and a few have been repeating customers for 10+ years. This also alludes to their excellent and abnormal profit margin that speaks for itself at 22% in the printing and fulfillment field.

In addition to current services provided, the firm has room to grow outside of traditional printing jobs by utilizing staff’s current ability to handle layout, online marketing, and shipping services to expand further into the online field required of today’s market. The current owner is willing to assist with a smooth transition by offering at least one year of training which could also be used to assist in hiring and training an in store general manager if new management would prefer a hands off management style. 

At a purchase price of $1,250,000, and a down payment of $187,500, a buyer would see a return of $155,728 in the first year after debt payments!  This business is well set for a new owner to step in and continue the incredible legacy they have built over the years. 

Business Highlights

  • Year Established: 1990
  • Location: Omaha, Nebraska
  • Reason for Selling: Partnership Separation
  • Employees: 10
  • Seller Training Period: 90 Days of training and support will be provided – the current owner would be willing to stay on as an employee if desired.
  • Current Owner’s Responsibilities: 2 of the 4 owners are actively involved in daily operation of the business. One is General Manager and in charge of administration, sales and marketing; second owner oversees all Mail Service, Data Processing and Digital Print operations.

Financial Highlights

  • Gross Sales
    • 2015: $1,719,660
    • 2014: $1,198,784
  • Owner Profit/Cash Flow
    • 2015: $407,672
    • 2014: $257,543
    • 2013: $186,852
  • YOY Growth/Sales Trends: More than $500,000 Growth in sales between 2014 and 2015
  • Profit Margin: 22%
  • Multiple: 3.9

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnNotes
202120202019
GROSS SALES$1,519,683$1,551,523$1,480,563
Net Income Shown on Financial Statement$-46,206$-3,638$221,670
ADDBACKS
Interest$11,537$26,580$32,100
Depreciation$144,402$226,916$74,138
Amortization$64,999$65,000$65,000
Meals$1,457$639$949
Contributions/Donations$76$0$0
Compensation to Owner$65,000$67,500$71,959Not working - previous Owner no replacement needed
Insurance Premiums for Owners: Health, Life, Auto$2,015$0$0
Compensation to Owner$63,700$63,700$66,150Via 1099 - O/O Purchase
Other$38,763$0$0Equipment Leases
TOTAL ADDBACKS$391,949$450,335$310,296
Seller's Cash Flow = Total Addbacks + Net Income$345,743$446,697$531,966
Profit Margin22.75 %28.79 %35.93 %
* Growth in Sales from 2014 to 2015!

Valuation Details

The List Price for the business is set at $1,500,000

Using the Cash Flow of $540,106, the Buyer’s Net Operating Income after debt service would be $314,151.  Assuming a 15% Buyer down payment on the Purchase Price $1,500,000, the Return on Investment in the first year would be 139.62%.

Purchase Price:

$985,000

$
%
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: %

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

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

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard

The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.