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Corporate Safety Training in California

CASH FLOW
$655,964

Specifications

  • Price
    $2,050,000

  • Revenue
    $1,751,655

  • Profit Margin
    40%

  • Location
    San Francisco area

  • Service Area
    California

  • Account Receivable
    $78,000

  • Equipment
    $230,000

  • Employees
    11: Senior Trainer (4), Jr. Trainer (2), Office Staff (2), 1099 Trainers (3)

  • Intangible Assets
    Outstanding reputation, many long-lasting relationships with clients, quality programming, high demand for services, superior customer service, specialized knowledge

This dynamic and successful business is a leader in the industry for high-hazard safety training.  With major clients including top names in the business, there is a continual demand for classes and much room to grow.  this business is nearly recession proof, as corporations must stay in compliance to remain operational.

 

Operating in three main areas of training (construction equipment training, OSHA safety classes, and train-the-trainer classes) this instructional facility offers a total of 44 classes.  This company is distinct in that they offer hands-on high hazard training in addition to classroom education.  This approach increases the competency of those participating in the class and has been very beneficial for the development of services.  The owner has a large inventory of specialized equipment for hands-on training for classes such as fall protection, confined spaces, rigging, traffic flagging, and excavation.  This company uses existing and proprietary materials for training.  Advanced payment is required of most students. 

 

With 9 highly-trained OSHA Training Institute Certified employees, and 2 office employees, this staff is able to absorb all duties currently performed by the owner except for quoting, and oversight.  A new owner does not need to have comprehensive understanding of safety training.

 

Over the years, this company has proven to be a leader in the field of high hazard training and has had very little loss of clientele.  Students are sent to training by their companies and those business-to-business relationships remain strong. 

Business Highlights

  • Year Established:2004
  • Location and Service Area:  San Francisco area
  • Clients: Corporate clients with 5 - 5,000+ employees needing compliance training
  • Enrollment: Booked solid 2 weeks out, partially booked 2 months out
  • Classes: 44 different class offerings
  • Lease: Location 1: 4,800 sq. ft. classrooms, office
  • Location 2: 5,000 sq. ft. classroom, storage
  • Reason for Selling:  Retirement planning
  • Employees:  11: Senior Trainer (4), Jr. Trainer (2), Office Staff (2), 1099 Trainers (3)
  • Hours: Monday – Friday 7:30-5:00
  • Seller Training Period: 3-5 years
  • Growth Opportunities:  Add instructors to increase capacity, expand facility to increase capacity, add technology for scheduling and online classes
  • Current Owner’s Responsibilities: Management, financials: staff can take over most duties except for quoting, and oversight

Financial Highlights

  • List Price: $2,050,000
  • Buyer Down Payment: $600,000
  • Seller Financing: $1,500,000
  • *Seller is showing goodwill for the buyers of this strong company with seller-majority financing!
  • Gross Sales:
    • 2018: $1,751,655 Annualized
    • 2017: $1,485,746
    • 2016: $1,047,734
    • 2015: $692,090
    • 2014: $603,840
  • Cash Flow:
    • 2018: $655,964 Annualized
    • 2017: $598,822
    • 2016: $345,765
    • 2015: $161,763
    • 2014: $198,171
  • Assets Included in Purchase*
    • Intangible Assets:   Outstanding reputation, many long-lasting relationships with clients, quality programming, high demand for services, superior customer service, specialized knowledge
    • Equipment: $230,492    Computers, harnesses, forklifts (6), aerial boom lift, training equipment
    • A/R:  $78,000
    • Vehicles:  $89,239
    • Furniture & Fixtures:  $2,562
    • A/R: $78,000                                     

 *amounts may vary

Clients

Corporate clients with 5-5,000+ employees needing compliance training.  This business is nearly recession proof, as corporations must stay in compliance to remain operational.  

  • Small – Large Construction Companies  70%
  • General Industry Businesses   30%

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • High Hazard Safety Classes 
  • Construction Equipment Training
    • Aerial Lift
    • Front Loaders
    • Forklift
    • Scissor Lift
    • And More! 
  • OSHA Safety Classes
    • CPR & First Aid
    • OSHA safety classes
    • LEAD EPA Certification
    • Traffic Control
    • Rigger & Signals
    • And More! 
  • Train-the-Trainer Classes
    • Aerial Lift
    • Confined Space
    • Excavation
    • And More!

Employees

  • Senior Trainer (4)
    • Directly train the students 
  • Junior Trainer (2)
    • Directly train the students 
  • 1099 Trainers (3)
    • Directly train the students 
  • Office Staff (2)
    • Bookkeeping
    • Scheduling
    • Billing

Growth Opportunities

  • Add staff to increase capacity 
  • Expand facility to increase capacity 
  • Advertise 
  • Add technology for scheduling and online classes

Valuation Details

The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash Flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2017 Cash Flow was used with a prescribed multiple is 3.45.  With this information, the computation is as follows:

$598,822         x          3.45     =          $2,065,936

The Fair Market Value found above positions the business List Price at $2,050,000.

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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