Specialized Mfg. Equip. Importer / Distributor - Western USA

Santa Ana, CA (Orange County)

Specialized Mfg. Equip. Importer / Distributor - Western USA

Asking Price:$4,000,000

Cash Flow:N/A

Gross Revenue:$12,200,000




Real Estate:$3,500,000*


*not included in asking price.

Specialized Mfg. Equip. Importer / Distributor - Western USA

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Business Description

Exclusive Distribution for the Western USA

Growing business with exclusive distribution rights in the 15 Western USA states for one of Japan’s largest producers of commercial manufacturing machinery. Company sells retail and wholesale with direct facilities in California and Arizona, and dealer partners throughout the territory. Under the leadership of the current owner, founder, and president, the company has been growing the top-line rather consistently by 13% since 2011, and is anticipated to exceed $20m by 2020.

(2015 FYE) Revenue $12.2m | EBITDA $900k | Cash $315k | Inventory $1.5m | LTD $98k
5-Year Average Revenue Growth 13% | EBITDA 56%
Reoccurring – Labor Contracts $450k |T&M $896k | Parts $1.2m | Supplies $1m
Team – Average Tenure 9 yrs. | Average Age 43 yrs. | 12 emp. 10+ years with co, including entire original management team 17-yrs.
Modern Commercial Facilities, Not Included/Negotiable - Corporate (Orange County) - 15,000 sf, Branch (Phoenix) Secondary 9,000 sf

Opportunities for Growth (presently available)
Organic – local retail and expanded dealer-partner business, service revenue, used machinery imports / resale, eCommerce, consumables, expanded related products and territories
M&A – merger with existing distributors in neighboring territories, acquisition opportunities of smaller dealers / distributors in current retail markets

The “seller” is seeking a new owner or equity partner to take the company and valued team to the next level. The seller would prefer a partnership / transitioning acquisition program as he would like to stay in the business for the foreseeable feature, especially with a partner experienced in growing and managing larger businesses. Current owner would like to focus his time and efforts in revenue generating aspects of the business, and leave management to a new owner / CEO with a renewed energy to lead the organization into a future of sustained growth and success.

About Current Owner
Degree in business (finance emphasis), 48-years of age, 25-years industry experience, believes strongly in the team approach to business that extends to customers and vendors. He is also the sales manager and third highest revenue producer in the company, huge appreciation for doing things right the first time, getting things done, all while keeping a real focus on detail. Company is presently led by a management team, established in 2000 as a California C-Corporation, with a proud claim to being a “21st Century Business.”

When established, it was a primary goal of the current owner to “develop a company that he would wish to work for one day.” By transitioning into a defined role of employment, he will be realizing his long-term goal. Furthermore, he has been managing this business, and a similar prior company for a combined 25-years, and it is time to hand off the management responsibilities.

Sale of Business
Looking for an equity partner / controlling interest owner that can bring sustained business growth and larger business management experience to our special company and team. If complete ownership is desired, seller is open to discussions. The company is more profitable than ever, opportunities are materializing at an accelerated rate, and just like with most public companies, it is time for a change in the C-Suite.

Seller is committed to finding a long-term fit for this special company, and more important than the money, is the buyer’s leadership skills, business experience, and commitment to the long-term sustained success for the company. Because the current owner / seller is committed to long-term employment with the company, industry specific experience is not required. In fact, may be preferred as we like to think outside the box and address this mature niche business with a new and modern approach.

Contact seller directly through the web site. Brokers welcome if you have a qualified buyer or wish to acquire additional information for your potential clients.

Detailed Information

Included in asking price
Real Estate:
Not included in asking price
Building Sq. Ft.:
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Inventory - new / used machinery presently valued at approx. $1.5m - wholesale value $2m, Retail $3m+, can vary depending on opportunities. Vehicles - KBB value of $145k / Toyota Finance $95k Incl. 24ft delivery truck with custom logistics, rail lift, and air-ride Computers, servers & software – $200k recent investment that allows for fully integrated ERP, CRM, Service & eCommerce, connected facilities & full mobility Multiple forklifts, handling tooling, extensive racking, office furniture, cubicles, etc.
• North American leader for very specialized industry • Exclusive distribution rights for Japanese manufactured machinery throughout the Western USA (15-states) • Many barriers to entry • No single customer represents more than 2% of annual revenue • Reoccurring revenue exist in the form of service and repairs, maintenance contracts, parts, and consumables
Growth & Expansion:
Organic – local retail and expanded dealer-partner business, service revenue, used machinery imports / resale, eCommerce, consumables, expanded related products and territories M&A – merger with existing distributors in neighboring territories, acquisition opportunities of smaller dealers / distributors in current retail markets Business has real potential for $20 - $80m+ of annual revenue. To realize the many present opportunities, the company requires new management / ownership experienced in leading and developing a larger business and team.
Negotiable based on management experience / fit; cash, internal leverage, etc.
Support & Training:
Unlimited, current owner is looking to retain employment for as long as the new owner should wish to keep him. Furthermore, for the past 5+ years the company has been transformed into a departmentalized team with quality and competent leaders in the various departments. Business is well positioned for this transition.
Reason for Selling:
To allow the company to better realize long-term sustained growth and success!

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Business Listed By:
Robert Ordway

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