Purchase Price: $545,000
10% Buyer Down Payment: $54,500
40% Seller Financing: $218,000
50% Bank Loan: $272,500
A company that implements corporate sales training programs with a 56.6% profit margin. This well-known company provides sales training primarily to larger, corporate clients, specializing in the senior living industry.
The business delivers a comprehensive training /coaching that involves the client’s executive, front line management and sales teams. The program is delivered via face-to-face training workshops followed by online/webinar involvement and follow-up telephone coaching.
In addition, a new client who requests their service will receive training manuals, access to learning centers, and to a toolbox that includes ‘manager’ materials. Each client is on a contract with repeat clients on annual subscriptions. They focus on the long-term growth of their clients, which creates recurring revenue as clients continue their services for a number of years. Their revenue comes from 65% projects and 35% online subscription services ranging anywhere from $5,000 to $70,000. In 2015 they brought in $332,874 in revenue, a 4.3% increase from 2014.
There is $77,812 in assets including $67,812 of A/R in the purchase price of this business. Intangibly, this company has an established national brand, a professionally designed website, and a library of cutting edge training modules used for their corporate clients. Furthermore, the majority of new clients come from referrals. There are two full-time employees. As part of their model, coaches work on a contractual basis and as such, are not employees. The current owner is responsible for finding new clients, online training, and traveling for several days a month to train clients in-person.
After all debt expenses have been paid, a buyer with a down payment of $54,500 can expect to retain an Owner’s Profit of $83,378 the first year, which is a 152% Return on Investment.