Part Supplier With Steady Cash Flow For Sale

Business description

Summit Business Brokers, Inc. announces its representation for sale for 3.2 times 2011 EBITDA plus Inventory. EBITDA in 2011 was $1.05 million and Inventory is now abut $800,000, so this equates to price of $4.2 million. This is a company that distributes a full line of one essential automobile replacement part. The company is located in Los Angeles County, California and has been in business for over 20 years. It sources the product from a variety of suppliers in the US, Canada and China and distributes from its warehouse in an approximately 16,500 sq. ft. building modern industrial park to numerous repair shops in the United States, Latin America and the Caribbean. It is not dependent on any one supplier and no customer exceeds 5% of annual revenues. The company has approximately 18 employees.

This is an excellent opportunity for an entrepreneur or established business to acquire a highly profitable and well regarded company. The owners and founders are retiring and will provide transitional assistance and entertain a consulting arrangement.

The sellers of this niche business consider the consistently high margins to be critical proprietary information. In this regard, the sellers will only authorize disclosure of the company’s identity and financial information to prospective buyers who have submitted business resumes and have indicated adequate resources to consummate the sale and fund the necessary working capital. Buyers unwilling to undergo necessary screening should not inquire. Principals only.

Property information

Real Estate:

Lease

Location:

The company is in leased warehouse/office building in a modern industrial park with adequate parking and excellent truck access and loading ramps. The industrial park is on a wide boulevard and a mile from a major freeway interchange. It is within 8 miles of the Ports of Los Angeles and Long Beach.

Size in square feet:

16,500 sq. ft.

Other information

Expansion potential:

A buyer may wish to explore expanding the product line to include additional parts and also service other geographical areas.

Competition / Market:

The company is the market leader in its niche. It competes on the basis of maintaining a full product line, prompt service and reliability as well as price.

Support & training:

The owners will provide 8 weeks of training at 20 hours per week. An additional consulting agreement may be negotiated.

Reasons for selling:

Owner retirement.

Trading hours:

Normal business hours M - F.

Financing available:

Seller financing may be available to a qualified buyer as a supplement to buyer cash equity and bank financing.

Furniture / Fixtures value:

$117,000 (included in the asking price)

Inventory / Stock value:

$800,000 (included in the asking price)