Highly Profitable Full-Service B2B Print Company
Diversified Corporate Clientele with 90% Recurring Revenue
Specifications
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Price: $825,000 |
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Revenue: $1,213,976 (3-Year Avg) |
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Cash Flow: $313,519 (3-Year Avg) |
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Location: San Mateo County |
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Service Area: San Francisco Bay Area |
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Profit Margin: 29% (TTM June 2023) |
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Employees: 4 FTE & 1 PT |
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Reason for Sale: Sellers are pursuing other interests |
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Goodwill: 15 Years Reputation 5 Star Reviews |
| Year Established: | Established in 2008 & under the current ownership for 7 years |
| Products & Services: |
Full-service print company that provides the best quality products in trade show graphics, prepress, printing, and specialty die-cut, stamping, binding services and more. |
| Equipment: | Equipment valued at $180,000 included in the asking price |
| Clients: | Mainly commercial clients with over 90% recurring revenue |
| Lease: | ~4500 sq. ft.; lease negotiable |
| Personnel: | 2 FT employees, 2 FT owners and 1 PT owner |
This presented acquisition opportunity is for a well-established, highly reputable 15-year commercial printing company located in the heart of San Francisco Bay Area. The company offers full-service printing services that provide the best in trade show graphics, prepress, printing, specialty die-cut, stamping, binding services and more.
The company’s strong reputation comes from its ability to deliver projects on time, no matter how demanding the client, by leveraging their in-house toolset of the latest and greatest digital prepress and production equipment as well as its strong relationships with a large network of reliable, high-quality suppliers, and its ability to source the best pricing available. With such an ability to handle all aspects of the production process from order to final completion, the business can effectively meet a client’s deadline requirements with a high-quality, final product.
The company originally started in 2008 as a small shop at the founder’s home, which progressively grew into full-service commercial printing.
The current owners acquired the business seven years ago. Under the current ownership, the business continues to thrive and has become a reputable and expert large-scale printing provider, focused on large format commercial printing of posters, signage and event printing. The business is efficiently run with two full-time employees and two full-time owners; a third owner works remotely to manage the business’s accounting and finances.
The business occupies about 4,500 sq. ft. space in an office building, owned by the family. A new lease is negotiable for a qualified buyer. The asking price includes top-of-the-line production equipment with market value of $180,000.
The current owners will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business.
Value Proposition
- 15 years of Established Reputation
- 5-star Customer Review
- Efficiently run business with a small team of staff
- Over 90% revenue is recurring from commercial accounts
- Revenue in 2021 impacted by the pandemic but fully recovered in 2022
- Large network of suppliers for high quality guaranty
- Diversified client base with no single client over 10% of revenue
- High quality customers with many large corporate accounts
Revenue Breakdown
Financial Highlights
- Listing Price: $825,000 + Inventory
- 3-year Average Sales (excl 2021): $1,213,976
- 3-year Average Cashflow (SDE – excl 2021): $313,519
- 2022 & 2023 Profit Margin around 30%
- Asking price includes $180,000 equipment
- Revenue dropped in 2021 due to reduced tradeshows
- Busy during tradeshow and event/holiday season
- Small inventory balance around $5,000 – $10,000
- Most client payments on net-30 days
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 three-year average cash flow is applied with the below market multiplier of 2.63x in favor of the buyer.
Funding Example
Purchase Price: $825,000
10% Buyer Down Payment
$82,500
Buyer’s Equity
90% Bank Loan
$742,500
10-year term at a rate of 10% = Monthly loan payment of $9,812
- Cash Flow (3-year average): $313,519
- Annual Payment to Bank: $117,746
- Net Profit (After Expenses and loan payment): $195,773
* 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.