Cash Flow Rich Communications and Advertising Agency

Maryland

Seller Financing Available

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Asking Price:$2,900,000
Gross Revenue:$2,700,000
FF&E:$100,000
Cash Flow:$875,000
Inventory:$100,000
Established Year:2006
BUSINESS DESCRIPTION

This well-known Creative Communications, Advertising and Full Service Marketing Agency is located in Central Maryland. The firm enjoys significant operating margins and documented profitability with sales nationwide and international.

The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 4.1x EBITDA (ttm). A full valuation report is included and there is $100,000 in Net Working Capital plus another $100,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain over a $365,000 benefit in after- acquisition-debt cash flow in Year #1 – over 60% return on equity investment.

(ALL DATA BASED ON SIGNED TAX RETURNS)


DETAILED INFORMATION
Location
Maryland
Inventory
Included in asking price
Employees
13
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
This business currently operates from a 3,500 sq. ft. leased office space.
Competition
The company enjoys a competitive advantage by solving client problems and creating solutions that are impactful and sustainable. Using an approach of “thinking differently” and rapidly producing creative content, they have attracted well-known global companies and maintained longstanding relationships. Their services run the full spectrum including strategy development, market research, advertising, videography, content creation, design, public relations and other related services.
Growth & Expansion
It is projected that a new owner can obtain significant additional growth by expanding sales development and production with a minimal investment of $150k. The company projects a revenue growth rate under such premise of 20%+ per year.
Financing
$0.3m Seller financing plus $1.2m Bank financing subject to buyer qualification
Support & Training
A comfortable transition period will be provided by ownership who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
Reason for Selling
Retirement (consulting available)
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Achim
Neumann
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Achim Neumann