Patented Animal Grooming Tools
Developed by an animal specialist, this grooming tool is far superior to its competition. Known for its excellent de-shedding capabilities, this tool is a must-have for those with shedding animals under their care. This item was meticulously crafted for ultimate usability and comfort for both the individual and the animal. This tool does not tug, pull, or scrape the animal. In fact, many animals love the feeling and enjoy grooming time like never before.
These products can be use on any animal that sheds. This means that you can use this on your horse, goat, dog, cat, mules, rabbits, donkeys, cows, or any animal that sheds or needs a clean-up. It can be used on animals with short or long fur as well as those animals with short or long undercoats. This item not only de-sheds, but also removes dander and dirt. This remarkable item can also be used on furniture, saddle pads, and carpet to remove stray or matted in hair or fur.
All products are made and sourced in the USA with the exception of stainless steel sourced overseas. All products have a utility patent. This item has an original design as well as an original blade design which was specially developed for this product. Much headway has been made in research and development. A design patent has been filed on an exciting new product!
- Year Established: 2010
- Distribution: US and international sales, many large box retailers, online retail
- Products: 1 utility patented product with 3 SKUs, 1 additional product R&D with design patent filed
- Patent: Utility patent, design patent filed on new product
- Lease: 1,500 sq. ft. space: office, inventory, shipping area, **very easily relocatable
- Sale Options: Full sale, partnership, or merger
- Employees: (1) FT, (2) PT, (3) 1099
- Seller Training Period: 6 months – 1 year
- Growth Opportunities: Expand new product lines, increase European sales, increase contracts with box retailers, increase production to reduce costs
- Current Owner’s Responsibilities: Business development
- List Price: $4,195,000
- Gross Sales:
- 2018: $979,667
- 2018 Annualized: $2,351,201
- 2017: $2,275,176
- 2016: $1,877,314
- 2015: $899,028
- 2014: $167,613
- Cash Flow:
- 2018: $558,696
- 2018 Annualized: $1,340,870
- 2017: $846,917
- 2016: $836,901
- 2015: $391,839
- Assets Included in Purchase*
- Equipment: Equipment for new product line, office equipment, packaging equipment
- Inventory: All products
- Intangible Assets: Superior product, positive brand recognition, outstanding product reviews
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$552,226||$761,328||$807,590||$385,001||$17,655|
|Non-Business Telephone||$1,150||$2,760||$2,760||$2,760||$2,760||$230/month for cell and hotspot|
|Insurance Premiums for Owners: Health||$3,405||$8,172||$8,172||$8,172||$8,172||$681/month for personal health; Premium raised in 2017|
|Insurance Premiums for Owners: Auto||$103||$246||$246||$246||$246||$123 every 6 months for personal auto insurance|
|Rent||$1,812||$24,897||$7,461||$-7,740||$-10,200||New space is $850/month|
|Legal||$0||$43,000||$0||$0||$0||Patent cost - One Time|
|Seller's Cash Flow = Total Addbacks + Net Income||$558,696||$846,917||$836,821||$391,759||$18,633|
|Profit Margin||57.03 %||37.22 %||44.58 %||43.57 %||11.12 %|
- 28% growth 2016-2017
- Pet owners
- Large animal owners
- Horse owners
- Animal non-profits
- Animal groomers
- Veterinarians and animal hospitals
- Animal rescues
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Shipping and Inventory (2)
- Bookkeeper (1)
- Marketing (3)
- Expand new product lines
- Increase European sales
- Increase contracts with box retailers
- Increase production to reduce costs
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 4.96. With this information, the computation is as follows:
$846,917 x 4.96 = $4,200,708
The Fair Market Value found above positions the business List Price at $4,195,000.
Purchase Price: $4,195,000
15%Buyer Down Payment: $629,500
15%Seller Financing: $629,500
70%Bank Loan: $2,936,500
Seller Financing 6-year term at a rate of 4% equals a monthly loan payment of $9,845.
Bank Loan 8-year term at a rate of 5.75% equals a monthly loan payment of $38,233.
After business expenses and loan payments, a buyer with a 15% down payment of $629,500 would retain a profit of $269,980, which results in a 43% 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 $4,195,000 with the terms listed above, the coverage ratio is 1.47 (will round up).
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.
2017 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2017 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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