Regional Mail & Print House
Regional Mail House
Purchase Price: $595,000
Location: Pacific Northwest Down Payment: $89,250
This Company’s targeted customer base is For-Profit, Non-Profit, Government and Local Municipalities that use direct mail as a way to communicate to their potential or current client base or as a part of a marketing campaign. The core business is Mailing (mail preparation and presort services), Printing (broker printing and design) and Data Management (list maintenance and mailing list acquisition). According to IBIS World reports revenue for the direct mailing industry was 12 billion dollars in 2012 and was down 1.2% over 2011.
HISTORY: The Company has a 65 year history. Bulk mail is an easy, efficient and direct way for companies or institutions to reach a large targeted market. The sales cycle for this business is influenced by the congressional and presidential election cycles and as such a buyer should evaluate the business using a two year average cash flow analysis.
The Owner has established policies and procedures to deliver the best combination of customer service and competitive pricing to the Company’s clients. The Owner is proud of what he has accomplished. He has built a strong foundation for a new Owner to take the business to the next level.
REVENUES CASH FLOW
FY 2013 $383,268 $121,690
FY 2012 $642.553 $324,142
FY 2011 $350,590 $130,277
FY 2010 $740,562 $266,474
MARKETING STRATEGY: The Company has no current marketing and sales department. The owner has relied on the 65 year history of the Company its reputation and high level of customer service. Eighty percent of the current business is from repeat clients with the additional twenty percent being split between referrals and the company’s website.
DAYS AND HOURS: Monday through Friday hours are 8:00am to 5:00 pm.
EMPLOYEES: Two full time and two part time employees.
FACILITIES: The business will be relocated as of Jan 1, 2014 to a 6,000 sq. ft. building, featuring a reception area, offices, loading dock and production area. The new rent is $2,950 per month to month basis.
REASON FOR SALE: The Owner has been in the business for over 30 years and has developed other interests that he would like to purse. In addition, his wife has owned and operated a separate business in the past and would like to pursue a new venture as well.
TERMS: This is a SBA transaction with Buyer’s cash infusion of $89,250, Commercial Lending of $446,250 and Owner Note of $59,500. The term of the SBA loan is for 10 years at an interest rate of 5.75% with payments of $4,898 per month with the Owner subordinating their note to the bank.
The owners note will accrual interest at 5.75% with no payments for the first 2 years. The note will begin on the 1st day of the 25th month for 96 monthly payments of $821. All principle and interest will be due and payable in the 96th month.