Established Distributor of Speciality Products For Sale

Business description

Our Client is an established distributor of specialty products marketed through catalog sales, internet sales, and some retail sales. The current owners are the second generation to own and operate this successful business since its inception in 1963. The Company’s attention to serving customers with quality products and services over the years has built a large customer base of institutions, organizations, and individuals that will provide continued sales for many years.
The Company markets its products each year by mailing over 175,000 catalogs to its target customers.

The Company maintains a website with all catalog items displayed. These items can be purchased online via a secure checkout system that accepts Visa, MasterCard, American Express, and Discover card transactions.

The Company operates out of a leased facility located on a main thoroughfare leading out of the city of Birmingham. The facility is approximately 4,500 sq ft with a product showroom, office space, stock room, and shipping area. The lease is assignable; there are four years left on the lease; and there are two additional five year options. Rent payments are approximately 3% of the annual sales.

The Company has a strong history of sales and profits that has built financial stability over its many years of operations. The Company’s balance sheet shows strong cash position that indicates wealth generation for a future owner.

D&B Industry Reports show the Company performing well above other businesses within its industry.

Property information

Real Estate:

Lease

Lease terms:

Date Lease Begins: December 1, 2003.
Ending Date: November 30, 2013.
Renewal Periods: Three successive periods of 5 years each. The Company is now one year into the first renewal period.
Monthly Rent: $3,400 per month - plus taxes - plus insurance. That is less than 3% or their annual sales.
Yearly Rent Increases: Increases with the Consumer Price Index at the end of each year.
Refundable Security Deposit: $1,500.
The Landlord grants the tenant the first right of refusal to purchase the building.

Leasehold rent:

$47,500 per annum

Other information

Support & training:

Negotiable

Reasons for selling:

This offering is part of the owner’s exit strategy plans. When they purchased the business from parents, early in their career the owner's goal was to retire near the age of 50. They are nearing that age and putting their plans in motion. They plan to spend their retirement time in non-profit missions work.

Trading hours:

8-5,M-F

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Negotiable

Furniture / Fixtures value:

$76,525 (included in the asking price)

Inventory / Stock value:

$166,500 (included in the asking price)

Related documents:

• 
• Profile

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• Buyer CA