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Opportunities

Integrated Barcode Company

Large client base with 147% ROI in first year!

CASH FLOW
$191,086

Specifications

  • Price
    $658,000

  • Revenue
    $1,930,698

  • Cash Flow
    $191,086

  • Location
    Corporate office in Orange County, California; Sales office in Georgia

  • Service Area
    Nationwide, with some international customers

  • Reason for Sale
    Strategic exit planning

 

This integrated barcode systems company is ready for new ownership! They provide media and consumables (labels, transfer ribbons, thermal tags) for 65% of their 1,800 client base, with the remaining 45% of clients utilizing their software and hardware services. They have one corporate office located in Orange County, California; and an additional sales office located in Georgia. They provide services nationwide and also have international clients! This small but efficient team produced nearly $2,000,000 in sales in 2020. A new owner has a wonderful opportunity to expand into new industries or continue to run this successful business as-is.

The company currently places their orders with nearly 240 vendors and keeps approximately $35K worth of inventory on hand at any given time. Along with offering a huge selection of products, they also provide printer & scanner maintenance and full-scale nationwide fulfillment services. They pack and ship customer-specific orders daily and distribute the shipments locally as well as nationwide using United Parcel Service and LTL freight companies.

 

Priced at $658,000, a new owner would see a 167% return on investment in the first year after debt payments. Growth is unlimited, as there are untapped markets across the country. Small businesses all the way up to large retail chains need these services to keep up with ever-evolving technology while maintaining profitability and keeping costs low. The current owner will stay on board for 3-5 years to spend the necessary time to train the new owner; the possibilities for revenue growth are exponential! 

Business Highlights

Year Established: 2007

Location: Corporate office in Orange County, California; Sales office in Georgia

Service Area: Nationwide, with some international customers

Services: Barcode system solutions & integration, equipment maintenance, fulfillment services

Clients: Over 1,800 in customer database across several different industries including retail, agriculture, fulfillment companies, healthcare, government, wireless companies, etc.; 55% resellers, 45% end-users

Lease: 3,500 sq. ft.: 70% warehouse, 30% office space: $4,900/month

Reason for Selling: Strategic exit planning

Personnel: 5: 1 Owner, 1 Office/Marketing Manager, 1 East Coast Manager (based in Georgia); 1 PT, plus 1 1099 sales rep (based in Chicago)

Seller Training Period: 3-5 years

Growth Opportunities: Increase marketing efforts to include more industries

Current Owners’ Responsibilities: Owner 1: Accounting, Order Processing, General Oversight; Owners 2 & 3: not active in the business

Financial Highlights

  • List Price: $645,000

  • 2020-2021 Average Cash Flow: $191,086

*amounts may vary

Assets

  • Assets: $94,000+
  • Equipment: $94,007 – Various electronics, computers, hardware, furniture, etc., plus 1 Forklift ($15k), 1 Air Compressor ($7.5k), and 1 Rewind Table ($20k)
  • Inventory: ~$35k at any given time (fluctuates)
  • Intangible: Client base covers a variety of industries, large number of repeat clients, solid reputation for excellent customer service

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
2021202020192018
GROSS SALES$1,591,452$1,930,698$1,682,661$1,628,583
Net Income Shown on Financial Statement$-20,090$90,410$31,391$85,754
ADDBACKS
Compensation to Owner$112,804$108,000$107,810$67,700
11% Tax on total W2 Salaries$12,408$11,880$11,859$7,447
Depreciation$0$1,491$124$0
Interest$26,433$97$3,163$7,937
Insurance$628$6,591$7,909$6,494
401k$6,674$4,320$4,546$2,031
Auto Expense$14,500$5,693$4,237$650
Draw$332$0$0$0
TOTAL ADDBACKS$173,779$138,072$139,648$92,259
Seller's Cash Flow = Total Addbacks + Net Income$153,689$228,482$171,039$178,013
Profit Margin9.66 %11.83 %10.16 %10.93 %
  • Year-over-year growth in sales

Valuation

Funding Example

Purchase Price:

$658,000

$
%
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:
2020-2021 Average Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020-2021 Average 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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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.