ESTABLISHED ONLINE RETAILER OF ARCHITECTURAL METAL PRODUCTS

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Gross Revenue:$2,500,000
FF&E:$484,000
EBITDA:$364,000
Established Year:1983
BUSINESS DESCRIPTION

Essential Business That Has Experienced Growth Year Over Year!

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https://generational.tfaforms.net/4660083?DealID=a1L2G000004hFfj

Located in the Mid-Atlantic, the Company is a leading manufacturer and seller of architectural metal products; stainless steel and color aluminum corner guards; insulated and veneer glazing panels; and drywall trims. In operation for over 40 years, the Company has developed a broad set of capabilities and has completed work on a variety of projects. The Company has invested significantly in its online store profile, building out three successful online stores. Each of these stores are demonstrating superior profitability as well as the ability to fuel revenue growth.

The Company has strong relationships with key customers in a variety of markets including: Commercial and Government (90% of 2022 sales); Single-family and Multifamily Residential (10%)

Products and Services. The majority of revenue is generated from a mix of the Company’s product offerings, which as a percentage of 2022 revenue, include: Corner Guards (45%); Metal Panels (39%); Shipping and Handling (7%); Drywall Trims (4%); Miscellaneous (5%).

INVESTMENT APPEAL

Outstanding Growth Opportunities. Several opportunities exist for the Company to significantly increase revenue and profit, including leveraging the Company’s proven reputation to pursue and penetrate new and existing markets. These opportunities are easily attainable given the appropriate investments in capital and human resources.

Low Employee Turnover. The Company has a low turnover, which is a signal of efficiencies and alignment within the Company. Low turnover allows the Company to retain the most skilled and experienced personnel in the industry.

Strong Client Relationships. The Company has built an extensive customer list and good industry relationships since its inception. The customer base is loyal, which allows the Company to save on marketing costs compared to competitors.

National Reach. The Company’s customer base and operations are national in scope, allowing it to service clients wherever they may be located and easily expand into new geographic markets.

Modest Ongoing Capital Investment Requirements. The need for capital expenditures is minimal moving forward. Capital expenditures are conservatively projected at approximately $10,000 per annum in order to support continued operational efficiency.

Industry Outlook. Manufacturers will enjoy slight growth at a CAGR of 0.4% to $54.7 billion over the five years to 2028, when profit will reach 3.8%. As industrial production continues to grow at a moderate pace, the overall value of construction will rise despite residential struggles. The growing number of businesses will also support nonresidential construction, helping it maintain its value moving forward.


DETAILED INFORMATION
Inventory
Not Included in asking price
Real Estate
Leased
Building SF
15,000
Employees
11
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
Machinery/Equipment: $362,000 Leasehold Improvements: $122,000 Corner Guard Online Store: $1,360,000 Metal Panel Online Store: $140,000 Drywall Online Store: $140,000 Cumulative Value of Online Stores plus replacement value of Fixed Assets: $2,124,000
Competition
The Company has developed extensive relationships with several large customers. While large projects may dominate the Company’s exposure to a single customer in a given year, over time the Company has developed and extensive customer base of over 5,758 industry participants. Furthermore, the Company maintains a 50% rate of repeat business based on its leading position in the marketplace. The Company’s expansive customer base ensures that the Company will not be significantly impacted by the loss of a single account over a period of time.
Growth & Expansion
Expand online presence - Increase e-commerce market share by ramping up online advertising campaign. Increase Sales - Hire additional sales and management personnel to increase top line revenues to increase profit margins. Increase production capacity - Hire more factory personnel and purchase additional equipment to increase factory output.
Support & Training
The owners are willing to remain on during a transitional period, under negotiated terms, to ensure a seamless transition of management teams.
Reason for Selling
Retirement
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Dan
Bernstein
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Dan Bernstein