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Marketing & Brand Development Firm for Specialty Food & Beverage

Sold

CASH FLOW
$32,871

Specifications

  • Price
    $85,000

  • Revenue
    $150,101

  • Location
    Vermont

  • Profit Margin
    21%

  • Equipment
    $10,500

  • Reason for Sale
    Family

  • Intangible Assets
    Long standing clients both locally & nationally, reputation that strives above their competitors, and a niche industry space for clients served

  • Lease
    3-year lease (in year 2) at $800/month for 900 square/feet within a historical building offering 3 rooms and an open layout

  • Employees
    4: 1 full-time designer & illustrator, 1 part-time web programmer & designer, and 1-2 interns assisting with all facets of the business

Specializing in design and branding for the food and beverage industry, this company offers 9 full service options for clients including print, packaging, branding, web & digital design, content marketing, video, trade shows, vendor coordinating and custom packaging design.  This four-people design shop has established not only local clientele, but regional and national clients as well.

 

They have made a name for themselves by offering topnotch products and services. With four work stations in a 900 square foot open layout, the overhead for this business is quite low for this small yet efficient staff. 

 

The business operates with Adobe Creative Suite and the project management system Team Work.   All work stations are equipped with dual monitors and Mac Systems.  The business is fully equipped with photography, videography, and lighting equipment allowing every job to be completed with ease.

Business Highlights

  • Year Established: 2012
  • Location: Vermont
  • Clients: 20% Regionally, 20% Locally, and 60% Nationally.
  • Client Type:  All clients are within the food & beverage industry
  • Services: Packaging, Print, Branding, Web & Digital Design, Content Marketing, Video, Tradeshows, Vendor Coordinating, and Custom Packaging Design
  • Lease: 3-year lease (in year 2) at $800/month for 900 square/feet within a historical building offering 3 rooms and an open layout
  • Reason for Selling: Family
  • Employees: 4: 1 full-time designer & illustrator, 1 part-time web programmer & designer, and 1-2 interns assisting with all facets of the business
  • Seller Training Period: 90 Days
  • Current Owner's Responsibilities: Project Manager

Financial Highlights

  • List Price: $85,000
  • Gross Sales:
    • 2018: $158,101
  • Cash Flow:
    • 2018: $32,871
  • Assets Included in Purchase*
    • Equipment: $10,500 – 4 Work Stations complete with Mac Systems, Photography Equipment, Videography Equipment, Lighting Equipment, Scanner & Copier
    • Intangible Assets: Long standing clients both locally & nationally, reputation that strives above their competitors, and a niche industry space for clients served

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementNotes
2018
GROSS SALES$158,101
Net Income Shown on Financial Statement$-15,146
ADDBACKS
Compensation to Owner$31,500
11% Tax on total W2 Salaries$3,465
Meals & Entertainment$1,232
Amortization$278
Non-Business Telephone$2,160$180/month
Auto-Personal Use$3,766
Contributions/Donations$1,317
Owner's Tax Auto$3,799
Gym Membership$500
TOTAL ADDBACKS$48,017
Seller's Cash Flow = Total Addbacks + Net Income$32,871
Profit Margin20.79 %

.

Typical Clients and Services

This design firm serves all types of clients within the food & beverage industry.

Services include:

  • Packaging
  • Print
  • Branding
  • Web & Digital Design
  • Content Marketing
  • Video
  • Tradeshows
  • Vendor Coordinating
  • Custom Packaging Design

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

Employees

Employees: 4

  • Full-time designer & illustrator (1)
  • Part-time web programmer & designer (1)
  • Interns assisting with all facets of the business (1-2)
  • All employees work at the office except one remote PT employee

Growth Opportunities

  • Increase video production project revenue – advertisements, stop-motion animation, and long-form features

 

  • Specialty food businesses need unique designs to help them stand out.  This company has extensive experience in designing food packaging, advertising, and more. 

 

  • Expand with the plant-based food market – This company has been approached by several plant-based food companies to complete work in this area. 

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 2018 cash flow was used with a prescribed multiple is 2.6.  With this information, the computation is as follows:

$32,871           x          2.6       =          $85,465

The fair market value found above positions the business list price at $85,000.

Funding Example

Purchase Price:                            $85,000

60%Buyer Down Payment:         $51,000

40%Seller Financing:                  $34,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $634.

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

Click to download NDA form

Print, sign and send to:

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

Or fax to:

f 402.939.0857

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The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.