Full Service Commercial & Personalized Products Printing
50 Years. $2.4M Consistent Average Sales. 17% Profit Margin. Green Business.
Specifications
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Price: $1,495,000 |
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Revenue: $2,375,238 (5-year avg) |
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Cash Flow: $394,410 (5-year avg) |
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Location: San Francisco Bay Area |
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Service Area: San Francisco Bay Area |
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Profit Margin: 17% (5-year avg) |
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Employees: 17 FTE (Includes 2 Owners) |
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Reason for Sale: The Sellers are Retiring |
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Goodwill: 50 Yr. Reputation 5-Star Rated, Stable Clientele |
| Year Established: | 1971 |
| Services: | One-stop shop for high quality commercial printing and marketing solutions |
| Furniture, Fixtures & Equipment: |
Price includes well-maintained commercial-grade equipment with estimated market value of $213,500 and office furniture of $16,400. |
| Clientelle: | Service all types of clients large and small with majority from commercial accounts |
| Facility: | 11,700 sq. ft. of office/production space is leased from the owners. |
| Lease: | The owners are willing to cap rent expense at $20,000/month for the first two years. |
| Personnel: | 17 FT employees including two FT owners |
| Software Used: | PeachTree, PageDNA, EPMS, MS Outlook |
The presented acquisition opportunity is for one of the leading commercial printing companies in the San Francisco Bay Area.
Established since the early 1970s
- Purchased by the current owners in the early 1980s
- State-of-the-art, one-stop-shop for marketing solutions
- Countless Silicon Valley companies as clientele
The company produces technologically advanced marketing materials using timesaving methods, tailored to each customer’s desired specifications.
| Key products include: · All types of printed collaterals · Offset & digital printing · High speed copies · Bindery Posters, signs & banners · Promotional items |
Key Services Include: · Inventory management · Direct mailing services · Kitting & fulfillment · Local delivery · Worldwide shipping services |
Certified green business: · Environmentally friendly inks & chemicals used in production · Recycled paper products · Cater to the environmentally conscientious SF Bay demographic. |
Acquisition of this business includes a full team of experienced staff. The roster of 15 full-time employees includes 2 sales reps, 2 customer service reps, 1 accountant and ten printing and production workers. The two owners manage the overall operation with a focus in sales and accounting.
The business occupies a 11,700 sq. ft. space owned by the current owners. The building is centrally located in San Francisco Bay Area with easy access to major highways. The owners are willing to offer a favorable lease option to the right buyer of the business.
Value Proposition
- 50 years of Established Reputation
- Exceptional Customer Reviews of 5 stars on Yelp
- The Sale Comes with a Full Team of Experienced Staff
- $229,900 Commercial Grade FF&E Included
- Consistent Revenue with 5-Year Average of $2.4M
- 2022 Projected Revenue Will Reach $2.7M
- Cash Flow (SDE) Averages $400K in the last 5 Years
- Stable Clientele with Countless Silicon Valley Companies and Universities
Revenue Breakdown
Financial Highlights
- Listing Price: $1,495,000
- 5-Year Average Cashflow (SDE): $400K
- 2022 Revenue projected to be $2.7M
- 43% Revenue Growth from 2021 to 2022
- Top 3 Customers Comprise 40-43% of Total Revenue
- Seller’s FY ends October 31•Pre-qualified for SBA Loan
Cashflow Analysis
Asking Price
The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.
For this business, a 5-year average cash flow is applied. The multiplier applied in this case is 3.73x, on par with other commercial printing businesses of similar size and production capacity.
Funding Example
Purchase Price: $1,495,000
10% Buyer Down Payment
$149,500
Buyer’s Equity
90% Bank Loan
$1,345,500
10-Yearterm at a rate of 7.5% = Monthly loan payment of $15,971
- Cash Flow (5-Year Average): $400,000
- Annual Payment to Bank: $191,656
- Net Profit (After Expenses and loan payment): $208,344
* 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.