Business Sold! Manufacturing Company.
Paul Olsen did it again selling the largest manufacturing company that produces racking and shelving for warehouses. He got the Colorado business owner 100% cash at closing and was successful in selling the real estate for top dollar. Paul completed the sale within 5 months and received no less than seven full price letters of intent primarily from Colorado business buyers. The owner interviewed many Colorado business brokers and decided to go with the #! Denver business broker in the city, Paul Olsen with Company Broker Group. Paul uses a very unique and proprietary method that allows him to sell the Colorado business for the highest possible Denver business valuation. Paul met with over 40 Colorado business buyers to figure out which would be the best candidate for this boulder-based business for sale. The seller was 100% satisfied with Paul’s efforts to sell this front range business quickly and quietly. His statement is, call Paul Olsen if you want your Denver business sold for the highest price with the strongest buyer. Just call Paul.
At closing the buyer gets over $3,000,000 in assets, inventory and accounts receivables, Debt Free.
The Sales Price of the company is $2,600,000, and the seller will carry up to $1,000,000 of the $2,600,000 for a qualified buyer. This business will qualify for an SBA loan, but the buyer must have at least $800,0000 of their OWN liquid funds available to put down. The seller’s willingness to carry up to 1,000,000 of the total sales price speaks volumes about his commitment and confidence in the ability for a new owner to get the gross sales and cash flow back to 2012-2016 levels.
As stated several times in this document, one of the two owners, Norm, has been an absentee owner for the last 40 years of the business operations. Until April 1, 2018 he spent the last two years working full time at Lynch Manufacturing which is another company that he sold two years ago and worked there full-time for the last two years. Starting April 1, 2018 Norm came to work for Teilhaber, and in only the last 30 days Norm has identified a wide variety of inefficiencies and areas where money is being wasted or could be saved going forward. These include approximately $35,000 a year in medical administration cost savings as well as $35,000 a year in 401(k) administration expenses. He is looking into the possibility of reducing cost of goods sold (COGS), including steel and other material costs by up to 5%. If an owner was operating the business full time over the past 2 years or so, they invariably would have identified this waste as well as other areas of waste which would have resulted in a profit last year versus a $288,000 loss.
The sale includes approximately $100,000 in cash, approximately $475,000 in accounts receivables, and $1,700,000 in assets (QSV), (original cost was over $2,750,000), vehicles, and great equipment to perform all manufacturing. The seller will “guarantee” the collection of the AR for the buyer. The company and the assets will transfer to the new owner at the closing COMPLETELY DEBT FREE, including accounts payables being paid off at closing. This totals about $3,500,000 in NET assets. Please see the comprehensive list of all vehicles, equipment and values for each piece in the data room below, which also contains the last 5 years of company financials and tax returns etc.
The seller will stay on for 3-4 months (or however long the buyer wants) to ensure a smooth and orderly transfer of the entire company operations to the new owner and provide a solid blueprint and assistance for fast growth going forward.
Critical Points to Understand:
100% Absentee-Owned – An On-Site Owner Can Do Much Better. The business has always been 100% absentee-owned, since 1977. In fact, the owner has worked full time at another company nearby. However, starting just this month, he is going in to work for Teilhabor part time to help out. We have 23 great and loyal employees that run all day-to-day operations, but a business will NEVER be “pushed” unless there is an on-site owner. Absentee-owned businesses will never run optimally or as efficient as one where the owner in pushing it. In fact, in 2013 we cash-flowed over 1,200,000 on sale of $7,141,522, but no one was in there to push sales and marketing efforts when they fell in 2015-2017. This is all we need now.
What We Manufacture and For Who: As you would imagine, large warehouses, distribution centers and manufacturing facilities need to store large quantities of products that are held either for short or long periods of time until they are shipped out. These warehousing, distribution and manufacturing facilities have between 10,000 – 1,000,000 square feet (or even 2MM-3MM SF in the case of Amazon, Walmart, of HD-type facilities) of storage space needed to hold products for a period. Holding as much product as possible is often critical for all these locations and is call “cubic utilization/maximization”. To squeeze square-footage in todays’ warehousing, distribution, and manufacturing locations, companies need to go “vertical”, now, more than ever to get the most product stored. This is where we come in.
Business Sold! 37-year-old commercial refrigeration niche Service business.
Paul Olsen did an excellent job valuing and selling this Denver Colorado business. This is one of the largest commercial refrigeration sales and service businesses in the Front Range and he got the seller 50% more than the original asking price and closed the deal in just 4 months. Mr. Olsen is an excellent Colorado business broker who completes Denver business valuations with the highest multiples in the industry. Paul worked very hard to sift through at least 50 qualified Colorado business buyers to find the right one for the owner of this Denver business for sale. Paul is in excellent mergers and acquisitions professional who will represent your Front Range business for sale better than anybody. With over 350 Colorado business sales spanning over 30 years, Paul is a veteran Denver business broker who you can trust to get the job done and sell your Colorado business quickly and quietly without breaching confidentiality.
Sales Price: $1,500,000 down and another $250,000 over time.
2014 Revenues Approx. 2,200,000
with Cash Flow of $620K-$650K.
2013 Revenues were 2,348,000
With Cash Flow of 535,600.
2012 Revenues were 2,277,000
With Cash Flow of 450K (approx.)
100%Absentee – Owned.
Current Owner lives in the Rocky Mountains several hours away and ONLY goes to the office/shop location 3 time a year.
|The sale includes 700,000 in accounts receivable, current inventory, equipment, and well-stocked vans and trucks.
We Service and Install for the entire Commercial and Governmental Hospitality Industry throughout Colorado: walk-in coolers, every form of refrigeration, freezers, ice machines, and cooking equipment, broilers, fryers, ranges, ovens, coffer brewers and grinders, coffee, tea, soda machines, and all other large and small-scale commercial kitchen equipment, such as prep tables, ice bins, under-counter, specialty items, and walk-in fridge/freezers, etc. We are so proud to say that our Certified Technicians are the “can do it”people. We can do anything for almost any company or governmental kitchen-related need.
As stated above, the business has been 100% absentee-owned and has been run by a long-standing manager for many years. An on-site operating owner can make immediate changes to improve the growth sales and sharply improve much of the waste and outdated systems and inefficiencies that have limited our profit margins.
We have the finest reputation in the State of Colorado for servicing the equipment stated above. We have a BBB A rating with NOT 1 COMPLAINT ON OUR RECORD. LET ME WRITE THAT AGAIN, NOT 1 BBB COMPLAINT. Thousands and thousands of jobs spanning 55 years, and not 1 complaint that we have NOT fixed. That says it all. We are so proud.