Seller Financing Available
Profitable Large-Format/Sign Producer - SemiAbsentee
Signs & Digital Graphics -- High Profits, Great Growth POtential
Santa Clara County, CA
Efficient and profitable full-service large format printing and sign producer. A solid business with consistent cash flow and robust profits, efficient operations, established web site, solid customer relationships, and great potential for future expansion. Gross >$300k, SDE >$100k, asking $197k.
This business is an efficient and profitable full-service large format printing and sign production facility in northern Santa Clara County, CA, that can be managed by a semi-absentee owner. With state-of-the-art software and up-to-date equipment, the business enjoys a sterling reputation with its many commercial customers in the Silicon Valley.
For 2013, the company did just over $300k in gross sales, and just over $100k in SDE – that’s a 33% return on sales! The owner is asking $197,000 (plus raw materials inventory) – ~60% of gross and 2 x SDE.
The company has a well-developed, recognizable brand, strategically displayed on its building, materials, and web site. Established in 2009, it relocated to its 1800 sq ft retail/industrial site two years ago. Rent is ~$1850/month, all inclusive. Utilities average $180/month. The lease is up in June 2014, but, if the new owner wants to stay, the landlord is very receptive to a new lease.
The current owner spends about 25 hours per week on the business along with two full-time employees. The seller suggests that a new owner has several options open: work full-time and concentrate on selling, work part-time and hire a full- or part-time outside sales rep, or be truly “absentee” and hire a manager/salesperson. Current sales are achieved without an outside sales person—with a sales rep visiting area businesses on a consistent basis, sales can grow dramatically, and the existing production capabilities have plenty of capacity to handle the increased volume.
The business produces most of the products it sells in its own facility; the balance is purchased under contract at a wholesale discount. Products include: trade show displays, lobby signage, banners—vinyl & digital, vehicle graphics & lettering (including “wraps”), window graphics & lettering, wall graphics, directional & wayfinding signs, frames & displays, menu boards, magnetic signs, ADA compliant signs, illuminated signs, dimensional letters, monument signs, and channel letters. They also consult with customers about signage requirements and alternatives, provide complete design services for customers who do not have graphic arts resources of their own, and do installation.
All the equipment and software is included in the sale, along with an extensive customer database, and a well-designed web site. The “wrapped” vehicle is a negotiable “extra.” The employees have been with the company for quite a while and are expected to want to stay with a new owner. While the owner is selling to have more time with her family, she is willing to remain and train a new owner for at least 2 weeks at 20 hours per week, and will be available to continue to work—in sales or otherwise—on a part-time basis, if the buyer wishes. So there would be seamless continuity to assure retention of the existing business clientele.
This is a good fit for a variety of buyers interested in: a “B-to-B” operation with no evenings or weekends; full-time management and operations, or absentee or semi-absentee management; steady, consistent cash-flow; established commercial customers; a combination of retail and manufacturing; multiple avenues for sales—retail, wholesale, internet, direct; a wide breadth of product offerings; a base for expansion into complementary products, such as advertising specialties and customized apparel.
This is a solid business with consistent cash flow and robust profits, efficient operations, established web site, solid customer relationships, and great potential for future expansion.