Business Brokerage and M&A Advisory Services

Available for Acquisition – Profitable Hearing Aid Store

Business Activity: This is a 65-year-old health service company that operates a retail network of more than 1,300 hearing aid locations across the United States. The franchise has the most recognized brand name in the industry and a franchisor that is ranked number 1 in the Health Services Industry.

Business Highlights: The current owner purchased the Santa Rosa, California franchise in 2006. At that time the store was operating with two Front Office Assistants and two Fitter Dispensers (including the owner) and was grossing in excess of $500,000 per year. Over a

period of time the owner has reduced his staff and hours and is now managing the business on a part time basis. There is room to add a second store in the Franchise territory making this a great growth opportunity at a great price. The average three-year gross margin is 70.82% with over 50% of the current business coming from past customers. The owner would consider staying on part time to sponsor a new buyer in order to become a licensed fitter dispenser.

Expansion Opportunities Identified: The owner has identified one additional location within the franchise territory as a growth opportunity.

Marketing Strategy: This franchise has grown using the Franchisor’s time proven advertising and marketing program. Using a combination of media that includes local newspaper, direct mail and contributing to the national advertising fund that sponsors national television and radio spots this office has built a profitable platform for a new buyer to take the territory to the next level.

Customer Demographics: There are currently 35 million people in the USA with hearing loss. With only 25% wearing hearing aids the target market consists of approximately 26 million people. In addition, this target population is rapidly increasing. The hearing loss population is growing at 160% of US population growth rate. The population of hearing-impaired, ages 18-44 appears to be decreasing, while the age 85-plus hearing-impaired population is growing at nearly 12-time US population growth, and the 75-84 population is growing at nearly 4 times population growth. (MarkeTrak VIII study published in the Hearing Review October 2009.)

Sellers Discretionary Cash Flow Recap:

Revenue Cash Flow
FY 2016 $230,750 $88,851
FY 2015 $259,097 $66,369
FY 2014 $280,022 $87,810

Days and Hours: Monday through Thursday from 8:00 a.m. to 4:00 pm.

Employees: The franchise currently has no employees other than the owner.

Assets: Inventory $3,000.00 and Furniture, Fixtures and Equipment $66,000.00.

Terms: Purchase price of $125,000. This is a SBA transaction with Buyer’s cash infusion of $18,750 (15% down payment) and Commercial Lending of $106,000. The term of the SBA loan is for 10 years at an interest rate of 6.0% with payments of $1,176 per month. The Franchise fee (due at closing) is $20,000.

Reason for Sale: The owner is of retirement age and is currently operating the franchise four days a week on reduced hours.

Directions: Contact Brent Freeman for more information at (503) 233-8600 ext. 2 or e-mail brentf@thecbbgroup.com.

No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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Available for Acquisition – COMMERCIAL AND RESIDENTIAL PLUMBING CONTRACTOR, Portland

BUSINESS ACTIVITY: This opportunity is a plumbing contractor that offers design-build, consulting and project management for commercial new construction, remodeling and residential remodeling and service calls for commercial and residential customers.

The Company concentrates on job sizes from $50,000 to $100,000 but has completed several projects over $750,000.

HISTORY: The original owners started the Company in 1977 as a husband and wife team. The Owners were able to grow the business and become successful servicing the residential and commercial customer.

In 2010 one of the shareholders had a medical issue and was forced into retirement. Shortly after, the other shareholder let the industry know that he was selling the company.

In late 2011, the current Owners learned about the opportunity and ultimately made a deal. The first year was chaotic with the building of the infrastructure of the business from the ground up with sales exploding.

The efforts of both partners aided in growing the Company’s sales volume by one million dollars the first year of ownership. The second year the Company grew by another million dollars and in 2016 the Company had their best year ever.

The foundation of this opportunity has been set. The customer understands that when they call the Company they are getting a fair price, great service and a commitment to complete the project on time.

The Owners are proud of what they have built. They have laid a strong foundation for a new owner to build upon. With a strong industry outlook this Company is poised for strong growth.

SALES AND EBITDA CASH FLOW:

FY 2016 ACT FY 2015 ACT. FY 2014 ACT. FY 2013 ACT.
REVENUES $6,701,166 $5,328,439 $4,987,952 $4,326,880
CASH FLOW $939,923 $881,388 $736,051 $375,059

MARKETING STRATEGY: The Company has no current marketing strategy in place. The Company has relied on their reputation, repeat contractor business and word of mouth to grow the sales. The outlook in the industry is strong. A new Owner with more energy could increase the employee base and bid more projects to grow the business.

DAYS AND HOURS: Monday through Friday hours are 7:00am to 5:00 pm.

EMPLOYEES: There are currently 7 full time office staff and 21 journeymen and apprentices employed by the Company, not including the Owners.

FACILITIES: The business is located in a commercially zoned area, locating in Washington County. The Company leases ¾ of an acre with the current rent of $3,000 per month.

REASON FOR SALE: The Owners would like to secure their retirement and continue to work for the buyer for at least one to five years

Directions: Contact Bill Billingsley for more information at (503) 233-8600 or e-mail billb@thecbbgroup.com.

No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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availiable for acquistion – PREMIER NURSEY

Introduction: The Nursery was founded in 1976, to become one of the premier nurseries in the Willamette Valley, Oregon. The area is noted for its pristine soil and great climate to grow their signature products.

The nursery specializes in four main product categories which include containerized woody ornamentals, field grown conifers and broadleaf evergreens, perennials, and potted liners. The area has allowed the nursery to developed an impressive infrastructure to grow over 900 plus varieties of quality plant materials and distribute to a dedicated customer base.

The Owners are proud of what they have accomplished. They have developed a dynamic employee base that can manage the business. This has allowed the Owners to work on the business and take the time for family and vacations.

Competitive Advantages: The Company has earned and developed seven competitive advantages that focus on its market niche, including its longtime focus on the quality of their products and the safety of their employees. Each of these advantages contributes to the future growth and prosperity of the company.

Future Growth Opportunity: This Company is poised for growth and with a stronger ownership drive; the possibilities for the future are vast. The Company has a solid infrastructure and strong processes and procedures that are time-tested combined with its loyal team, which boasts more than 40 years of experience. The powerful combination of the Company’s four growth opportunities and the Company’s solid reputation makes this nursery an excellent bolt on company—ideal for a private equity group, for a company desiring to diversify, or as a prime expansion opportunity for a strategic buyer.

Management Succession: Predictability of personnel and management for a buyer is vital. The current operation is strong and all processes are in place with a well-trained and loyal workforce. There are key management personnel at all levels—most of whom have been with the company for over 15 years. The Owner is looking to retire within the first year, so this is effectively a turnkey operation for the next owner.

Sales and Seller’s Discretionary Cash Flow:

FY 2016 ACT. FY 2015 ACT. FY 2014 ACT. FY 2013 ACT.
REVENUES $7,144,298 $6,017,250 $5,928,594 $5,893,278
MARGIN 23.77% 15.04% 19.94% 23.61%
CASH FLOW $611,643 $50,622 $267,879 $412,105

January through July 2017 sales revenues are $4,238,562 with profits at $820,674.

Facility: The nursery is located and operated in the Willamette Valley on almost 300 acres of owned and leased properties.

The farm property that the Owners own is leased back to the nursery at market rate terms. The property is available for sale.

The remaining leases are 10-year leases that all are renewable. The land that is being leased is only zoned for farming. The individuals that own the land desire the land to be farmed due to the property tax breaks that they enjoy.

Reason for Disposition: The Owners are at an age where they would like a staged retirement. The Company is well positioned to be grown to the next level. The Owners feel that at this time in their lives they do not have the drive or the desire to grow the business further.

Suggested Purchase Price:

Sale of Business Assets: The CBB Group is marketing the nursery for $10,000,000.00. The allocation of assets is as follows:

  • Inventory $7,768,567
  • FFE $ 970,000
  • Goodwill $1,261,433
  • Property $6,500,000

There was an appraisal completed in August 2009 for the property and buildings with a value of $5.5 million. The owners are willing to sell, lease or use the property as collateral for recapitalizing the business.

Directions: Contact Bill Billingsley for more information at (503) 233-8600 or e-mail billb@thecbbgroup.com.

No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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Available for Acquistion – NON-MEDICAL IN HOME HEALTH CARE, Santa Barbara

Introduction: This opportunity is in the home care industry that serves the needs of individuals who aren’t ready for an institutional setting and need assistance to remain living in the comfort and privacy of their own homes.

The industry is mushrooming with the aging baby boomers and their needing help to keep their independence. It is a great opportunity to own a thriving National Franchise backed by a company with over 20 years of experience that has become a widely recognized brand name in the senior care field.

The 85 and older population is expected to more than triple between now and 2050 in the United States alone. This is a staggering statistic that not only proves the growing need for senior care, but also that thousands of families are facing the same critical decisions.

This Company currently has two types of services that provide:

Homemaking/Companion Care-Tasks include, but are not limited to:

  • Light Housekeeping • Laundry • Meal planning & Preparation • Shopping • Errands • Medical Reminders• Transportation to Appointments • Companionship & Conversation • Helping with pets • Stand-by / Assistance with walking / movement reducing risk of slips, trips & falls.

Personal Care-Provides assistance to help clients successfully performs activities of daily living. These include one or more of the following and are characterized by “hands-on-touching”.

  • Bathing • Personal grooming and hygiene • Dressing• Toileting and elimination • Nutrition/hydration and feeding • Mobility • Mental / Cognitive needs • Medic1,054,187ation reminders • Hospice support care• Alzheimer’s care• other dementia care

The clients who subscribe to these services want to maintain a quality of life and their freedom. Home care is also utilized for clients who are rehabilitating from workman’s compensation accidents, post op/surgery rehabilitations and seniors who need help rehabilitating from a fall or broken bones. Services are provided in hospitals, assisted living facilities, rehabilitation facilities, nursing homes and memory care facilities.

Financial History: The level of net income in this offering used for analysis purposes will be Sellers Discretionary Cash Flow (“SDCF”).

Year

2017 Projected

2016

2015

2014

2013

Revenues

$1,300,000

$1,054,187

$1,372,889

$1,337,644

$1,590,775

SDCF

$275,000

$153,126

$299,887

$303,005

$344,247

SDCF % to Income

21.00%

14.53%

21.84%

22.65%

21.64%

Competitive Advantages: The Company has earned and developed 6 competitive advantages that focus on its market niche. Each of these advantages could significantly contribute to the future growth and prosperity of the Company.

Growth Opportunity: The business continues to grow due to branding, loyalty, and consistent high-quality services. A new owner could build upon current owner’s relationships with the medical community and even enhance by adding a Community Service Representative.

Price &Term: This is a SBA transaction with Buyer’s cash infusion of $120,000, Owner note of $77,500 and Commercial Lending of $577,500 plus SBA fees. The term of the SBA loan is for 10 years at an interest rate of 6.00% with payments of approximately $6,411.00 per month.

The Owner Note shall be payable in the form of a Promissory Note and Security Agreement, subordinated to Buyers’ private lender. The basic terms and conditions of the note shall will be payable in 96 monthly payments with annualized interest of 6.00%, with payments starting 24 months after closing. The first 24 months will accrue compound interest. There will be no pre-payment penalty.

Initial Investment: The buyer will need to have approximately $186,700.00 for the following acquisition cost:

  • $120,000.00 Down Payment for Acquisition
  • $15,000.00 Franchise Transfer Fee
  • $7,000.00 Estimated Expense for State of California Home Health Care License
  • $10,000.00 Estimated Expense for Bank Fees, Attorney Fees, and Closing Cost.
  • $9,700.00 Lease and Utility Deposits
  • $25,000.00 Working Capital (The bank may include a credit line with the package.)

Directions: Contact Bill Billingsley for more information at (503) 233-8600 or e-mail billb@thecbbgroup.com.

No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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Available for acquistion – Full Service Erectors Contracting Company

BUSINESS ACTIVITY: The Company is a full-service erection company specializing in the erection of pre-engineered steel buildings. The Company erects all sizes of structures, from small additions to existing building and new construction up to 1,000,000 sq. feet.

Projects include working with structural steel, mezzanines, joists, decking, stairs, and rails. The Company also handle repairs and re-sheeting work from installing a door to completely re-siding and re-roofing an existing structure. The Company has built clear span buildings up to 320′.

HISTORY: The Company is an extension of the family business that has been in existence since 1970’s. The Owner has built a reputation in the industry of being honest and fair prior to starting this business.

The Owners philosophy in business is to keep debt at low levels and cash in the bank. He ensured that the business could weather any economic downturn or have cash available to purchase new equipment so the company could continue to grow and prosper. This business philosophy took the Company through the 2001and 2008 economic downturn with no cash flow issues.

A business associate came to the Owner and wanted him to partner in purchasing a 60,000-square foot commercial building. The business had outgrown their current location and the Owner was open to purchasing a larger. In 2004, was moved to a new location. The Owner states “This was the best decision that I had made the business. We went from a small location with no shop and a small equipment yard to a 10,000-square foot building and an acre to store our equipment. Because of the move the Company grew substantially in the first year. We had the space to hire more employees, purchase additional equipment and were able to market to other contractors.”

The recession of 2009 – 2010 – 2011 was difficult for the construction industry. During this time, the Owner was able to retain his key employees and marketed to company’s needing service work or remodeling on existing buildings. This proved to be a profitable profit center, but more importantly, the Company made money in tuff economic times and retained their employees. He understood that he had the ability to maintain sales and profitability in any economic climate.

The Owner has built a strong operation with well-honed policies and procedures. This should afford a smooth transition to a new owner.

SALES AND SELLER’S DISCRETIONARY CASH FLOW:

FY 2016 ACT. FY 2015 ACT. FY 2014 ACT. FY 2013 ACT.
REVENUES $7,875,606 $4,903,569 $5,760,008 $3,040,288
MARGIN 19.84% 20.68% 30.60% 23.47%
CASH FLOW $807,145 $344,306 $1,093,064 $167,223

MARKETING STRATEGY: The Company has no current marketing strategy in place. They have relied on repeat work from general contractor’s and word of mouth to grow the sales.

A new owner with energy can grow the company substantially by bidding more projects. The Owner has identified 4 other possible growth opportunities.

DAYS AND HOURS: Office hours are Monday through Friday from 8:00 am to 5:00 pm with construction workers starting at 7:00 am to 4:00 pm.

FURNITURE, FIXTURES & EQUIPMENT: The FFE is estimated to be $600,000 to replace the current furniture, fixtures, and equipment with the same or similar assets in the used market place. Also remaining in the business is $800,000 of receivables for working capital.

EMPLOYEES: There are 2 estimators, 4 full time support staff employees and approximately 48 non – union construction workers which includes 9 foremen. The management team is in place to support an absentee owner or a buyer that has limited or no experience.

FACILITIES: The business is in a 10,000-sq.ft. warehouse building with a large office, warehouse, and shop area. The current lease agreement expires on July 1, 2024 with monthly lease payments of $3,000 per month plus NNN.

A new lease will be written to satisfy SBA requirements. The capacity of the present premises is easily up to $20 million or more.

REASON FOR SALE: The Owner has been in the construction industry for over 40 years and desires to retire and pursue other interest.

PURCHASE PRICE: This opportunity is being marketed at $2,800,000 with the combination of SBA financing and an Owner note. The Buyer’s will need approximately $420,000 cash infusion for down payment, Commercial Lending of $2,100,000 plus SBA fees and Owner note for $280,000. The term of the SBA loan is for 10 years at an interest rate of 6.00% with payments of approximately $7,821 per month.

The Owner Note shall be payable in the form of a Promissory Note and Security Agreement, subordinated to Buyers’ private lender. The basic terms and conditions of the note shall will be payable in 96 – monthly with annualized interest of 6.00%, with payments starting 24 months after closing. The first 24 months will accrue interest of $1,400 per month. There will be no pre-payment penalty.

INITIAL INVESTMENT: The buyer will need to have approximately $480,000.00 for the following acquisition cost:

  • $420,000.00 Down Payment for Acquisition
  • $10,000.00 Estimated Expense for Bank Fees, Attorney Fees, and Closing Cost.
  • $50,000.00 Working Capital (As part of the bank financing a credit line may be granted

Directions: Contact Bill Billingsley for more information at (503) 233-8600 or e-mail billb@thecbbgroup.com. No additional information will be released until the buyer has been pre-qualified by the Broker.

NOTE: THE BROKERS HAVE MADE NO INVESTIGATION OR VERIFICATION OF THE INFORMATION PRESENTED HEREIN

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Available for Acquisition – Commercial HVAC Company – West Coast

INTRODUCTION: Located on the west coast, this profitable company was founded over ten years ago by industry veterans. The company has seen steady growth over the last eleven years. With 75 percent of its revenue generated from service contracts and the remaining 25 percent coming from new construction along with a turnkey management team, it is well positioned to take advantage of future growth opportunities. The current facility has the capacity to support a threefold increase in production. Services range from HVAC, refrigeration, boiler and chiller installation and service to full service, design and installation of EMS, Mechanical Hydronics Systems and Co-generation plants.

GROWTH OPPORTUNITIES: The owners have identified nine growth opportunities. The company is poised for continued profitable growth with a new owner with an stronger capital structure in place. As the owners wish to remain with the company, the combination of nine growth opportunities, a turnkey management team and a new capital structure, would make this an excellent add-on to an existing platform company or a strategic buyer.

FINANCIAL HISTORY: Revenues for 2011 were $4,600,000, a three-year high and an increase of 20 percent over 2010. The EBITDA for 2011 was $688,000 with an increase of $300,000 over the 2010 results. In addition, gross margins grew by 3.5 percent on an annual basis.

REVENUES EBITDA
FYE 2012 $6,911,743 $742,297
FYE 2011 $4,602,290 $687,120
FYE 2010 $3,847,894 $362,060
FYE 2009 $3,977,663 $397,323

Contact :
Brent A Freeman
Phone: (503) 992-1216
E-mail: brentf@thecbbgroup.com

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Available for Acquisition – Rare & Collectable Wine – Internet Auction House – Global Sourcing and Sales

Introduction: The worldwide market for rare and collectable wines is the fastest growing segment in a $250 billion market. The Company has grown sales in the last ten years to over $14 million using a combination of technology, proprietary market data, intellectual knowledge and a passion for fine, rare and collectable wines. With a global reach, the Company shipped wine to every continent in the world in 2012 (except Antarctica). In addition to its ability to deliver top notch customer service to rare wine buyers, the company has developed ten competitive advantages that focus on its market niche, including technology, geographic location, product sourcing, and its customer base. As a result the Company is positioned for significant growth.

Growth Opportunity: The owner has identified thirteen growth opportunities and is implementing a strategic growth plan that will take advantage of some of these opportunities in 2013 and has set the stage for continued growth in 2013 – 2015. With capacity online that would allow for revenue to grow to $40 million per year, very little cap-x would be required for future growth. The owner has planned for his eventual retirement and has invested in additional senior management making this opportunity truly turnkey. The owner is also willing to enter into a one or two year employment contract for the right buyer to ensure a seamless transition and would make this an excellent add-on to an existing platform company or a strategic buyer.

Financial History: First quarter sales for 2013 were $3,790,886 an increase of $638,184 over Q1 sales for 2012. The company has a 4 year gross margin of 22.01% and a 2013 gross margin of 22.73%.

Revenues SDCF
FY 2012 $14,045,393 $681,518
FY 2011 $14,245,420 $763,924
FY 2010 $12,646,019 $740,825

 

Reason for Sale: The Owner is getting close to retirement age and is looking for a staged transition.

DIRECTIONS: Contact Brent Freeman for more information at (503) 992-1216 or e-mail brentb@thecbbgroup.com. No additional information will be released until the buyer has been pre-qualified by the Broker.

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