Omaha Indoor & Outdoor Sign Shop
With $150K in assets, this full-service sign shop has a skill set for mastering complex projects. This company is equipped with vinyl cutters, inkjet and thermal printers, and a computerized router that will cut up to 2” thick plexiglass. Projects include high-quality signs and banners, electronic message centers, vehicle graphics, sign makeovers, and interior signage. The customer base is very diversified, and business is not reliant on any one contract. Projects range from replacement to creation and any request in between.
The company leases an 1,800-sq. ft space with an open area and front desk for $1400/month. Room dividers are in place to house the specialized equipment relevant to this business. A full-time foreman with over a decade of experience handles all the office needs including sales. Two part-time employees assist when needed.
Outfitted with a strong name and industry recognition, a strategic buyer could step in and work toward getting additional regional and national work. With diverse clientele and referrals from competitors, this company’s reputation has paved the way for growth.
- Year Established: 1991
- Location: Omaha, NE
- Service Area: Omaha (80%) within 100-mile radius (20%)
- Services: high-quality signs and banners, electronic message centers, vehicle graphics, sign makeovers, interior signage
- Lease: 1800 sq. ft. month-to-month at $1400/month
- Reason for Selling: Retirement
- Employees: 3; Foreman (1), Part-time staff as needed (2)
- Hours: Monday-Friday 8:30am-5pm
- Seller Training Period: 3-6 months
- Growth Opportunities: More regional and national work
- Current Owner’s Responsibilities:Owner/operator
- List Price: $286,000
- Gross Sales:
- 2018: $415,248
- 2017: $278,661
- 2016: $309,990
- 2015: $295,892
- Cash Flow:
- 2018: $130,249
- 2017: $86,076
- 2016: $102,502
- 2015: $86,117
- Assets Included in Purchase*: $150,000
- Equipment: Computerized router, vinyl cutter, Large inkjet printer, panel saw, thermal printers
- Intangible Assets: Diverse client base, reputation for accomplishing unique and complex projects, excellent customer service.
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan. - Dec.
|Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$91,674||$51,430||$56,938||$52,199||$46,688|
|Compensation to Owner||$30,000||$20,000||$30,000||$20,000||$20,000|
|11% Tax on total W2 Salaries||$3,300||$2,200||$3,300||$2,200||$2,200|
|Health Insurance||$4,552||$6,764||$7,104||$7,104||$7,104||Personal expense|
|Auto-Personal Use||$2,396||$3,330||$2,808||$2,262||$1,928||50% is personal|
|Seller's Cash Flow = Total Addbacks + Net Income||$134,801||$86,076||$102,502||$86,117||$80,272|
|Profit Margin||32.46 %||30.89 %||33.07 %||29.10 %||32.50 %|
- Profit margin 2018: 31%
- Property Management Companies
- Commercial Construction/Renovation
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- High-Quality Signs and Banners
- Electronic Message Centers
- Vehicle Graphics
- Sign Makeovers
- Interior Signage
- Foreman (1)
- 17 years of experience, works in the office and assists with sales
- Part Time Staff (2)
- As needed
- More regional and national work
- Increase online sales capability
- Increase marketing and advertising
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 2.2. With this information, the computation is as follows:
$130,249 x 2.2 = $286,548
The fair market value found above positions the business list price at $286,000.
Purchase Price: $286,000
15% Buyer Down Payment: $42,900
15% Seller Financing: $42,900
70% Bank Loan: $200,200
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $800.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $2,631.
After business expenses and loan payments, a buyer with a 15% down payment of $42,900 would retain a profit of $89,081, which results in a 208% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $286,000 with the terms listed above, the coverage ratio is 3.16.
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.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2018 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2018 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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Omaha, NE 68114
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