Large Event Tent Reseller,High End Tent Mfg,Custom Textile Fabrication

Denver, CO (Denver County)

Seller Financing Available
Large Event Tent Reseller,High End Tent Mfg,Custom Textile Fabrication
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Asking Price: $850,000

Cash Flow: $300,000

Gross Revenue: $1,900,000

EBITDA: $300,000

FF&E: $143,000

Inventory: $50,000*

Rent: $4,195.19 /Month

Established: 1900

*not included in asking price.

Large Event Tent Reseller,High End Tent Mfg,Custom Textile Fabrication

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Business Description

Tent Manufacturing Co and Custom Textile Fabrication Co and Large Event Tent Reseller all with Great Name Recognition and Reputations

Made in the USA

In 2018, these 3 combined companies’ generated 1.9M in revenues with earnings of 300K. The adjusted earnings spreadsheet is in the data room along with all of the financials which I will send you after submitting the non disclosure in the link above. The owners each work 30 hours a week which is properly adjusted for in the spreadsheet with consideration to the replacement cost for the 2nd owner BUT the owners believe that a new owner can do both of their jobs in 40 to 45 hours a week. In other words, I have added a $22,500 negative add back into the earnings and valuation which they do not believe should be there. This means that the sales price should probably be at least $60K higher than I have set it. This offering includes 3 business that are all part of the same business and can’t be separated and must be sold together. All 3 companies work in tandem with the employees, space, and materials. The 3 businesses are:

The Tent Co had revenues of 1.6M with earnings of 262K in 2018. They create and manufacture the highest quality tents and outdoor products using canvas and custom fabrics. This company has a great reputation for style, quality, and craftsmanship. As one of the leaders in the industry and with camping growing impressively, so has the revenues of this company. Glamping, outfitters, marketing agencies, big box, festivals, and campgrounds are all wanting their main products which consists of bell tents, range tents, wall tent, safari tents, and tipis. Never has there been a better time than now to get into this business. The company has been growing double digits year over year and is expected to do it again. With the addition of a new ERP system the company has been able to lean the process locally while adding contract manufacturing for the large orders.

They have 2 subsidiaries, one is a reseller of large event tents that the main company does not have the capacity to manufacturer. It met the needs of many of the company’s decade old customers that were needing event tents. It has its own website and company file. This company has been merged back into the main company as of December 31, 2018. It has broken even the last couple of years but takes care of the needs of some customers that order other products.

The custom sewing/fabrication subsidiary was started in early 2017 as a response to a large number of requests for custom sewing jobs not related to the main company. Since they had the machines and skilled labor, they quickly realized there was an open market for this type of manufacturing. The company provides custom prototype designs, small, medium, and large production runs as well as repairs for textiles of varying sizes and complexities. They found that there were less than 15 custom/prototype sewing companies like this in the USA and only 5 capable of doing what they do. The business was given no advertising budget and was never the primary business interest of the Sellers. They believe this business will prosper with a focused new owner who could give it more attention.

This subsidiary had earnings of 67K on revenues of 213K in 2018 which was just its first full year. Work finds them by customers utilizing internet search engines for custom textile design and fabrication. This company’s trending website has led to almost all of the products now being manufactured. The company provides custom prototype designs, small, medium, and large production runs as well as repairs for textiles of varying sizes and complexities. This turn-key opportunity is very inexpensive and has everything in place for it to grow. This company has been turning away jobs in order to focus on the parent company’s growth. They had no choice but to turn down work for this company. They have fixed this by moving the larger projects to Utah which allows smaller stations with more machines where they can hire more workers, do more projects, and grow this much larger.

The new owner will have many ways to grow each of these companies by expanding its advertising by utilizing the current resources of the employees, equipment, facility, infrastructure and inventory.

The companies have built a solid reputation for over a century and has the equipment, inventory, and room to grow with a new owner. No outside sales have been brought on since the work has always come to them. With the addition of a sales team, the revenue could easily double in the first year. A new owner’s attention would also increase the profitability by focusing on additional marketing and advertising.

No specific experience is necessary. There is a team in place.

Manufacturing in the USA is becoming more and more popular. Overseas manufacturing has become less desirable due to higher material and labor costs, additional tariffs, long shipping times, impractical quality control, long lead times, consistent errors in products, large minimum quantities, and the language barrier. There are very few sewing operations in the US; most are expensive and extremely busy with long production times. With the consistently growing camping industry, this is a great time to be in this business.

This business is now 2 separate businesses with tremendous synergy and upside. They must be sold together as they share employees, inventory, equipment, space, etc. The main company has been priced at 625K which is probably worth closer to 700K and the sewing subsidiary at 225K for a total sales price of 850K plus their cost of inventory. They believe this is a very good price for buyers. The custom sewing/fabrication company is at a higher premium since they ignored it in favor of the main company last year because the main company was growing very fast. Banks should allow a single loan for both companies’ combined in these situations.

Location: Central Denver Industrial Area

Brief Overview and Selling Points:

We have a powerful ERP system that is designed for this type of business, so all the sales, labor, material, inventory and quality control is tracked with ease. The framework is set for someone who is ready to grow a business. The company’s balance sheet current assets and debt which will be zeroed out (paid off) with the owner taking their residual cash at closing which makes this a debt free sale. The owner estimates that the market value of the FFE is 143K including the vehicle for 6K. They have approximately 50K in inventory.

Great Employees: The operation team is comprised of 7 employees in the offseason and 11 in season including five craftsmen with collective experience spanning over 75 years. The trained staff completes all aspects of the manufacturing including shipping. The Production Supervisor oversees all aspects of the manufacturing and ensure a high level of quality control. The supervisor assigns and manages all the production employees to assure production stays on schedule. He knows the product fabrication, Standard Operating and Quality Control Procedures and is familiar with project quoting. With the ERP system, the quoting for new projects is relatively simple. He also trains employees and maintain all equipment on the production floor. Employees have all been with the company for decades and will stay on with a new owner. The employees receive dental and Aflac insurance along with vacation and sick time. The owners currently handle the inside and outside sales, marketing, customer service, help with product design, and material ordering.

This company utilizes an outside contract bookkeeper to handle all bookkeeping duties including payroll and tax preparation. A new owner can take over these responsibilities eliminating the additional cost.

This business has a large number of recurring customers for tent sales. The custom sewing/fabrication company has many repeat customers who require prototyping, small and medium run capabilities for their products, and is currently working with a few customers that have huge potential to scale into large batch orders.. Both companies have many customers that exclusively use them to manufacture their products. Companies come to us for our ‘tent look’ and reputation that our tents have. We have a set discount for repeat customers, but most customers pay the regular price for their products. We do quote a lot of custom tents, however none of our competitors will make custom tents, so we usually are not competing for business with custom tents. With tents having a 3-5-year life cycle when used in a business application, repeat business is consistent.

We can take on large orders with low lead times since we have established an outside contract manufacturer. We decided to bring on a contract manufacturer for large orders so we can divide the work benches into smaller ones allowing much more room for additional seamstresses and equipment. The profit margins on our tents are between 30-40% which is excellent for US made products.

With the increased excitement of glamping and safari tents there are many products that can be brought on to increase revenues; such as, bathrooms tents, larger Bell tents, wooden frame system, decks, multi-room tents just to name a few.

The main company has been featured on Fox & Friends, How Its Made, Tiny House Nation, and in Popular Mechanics. These are but a few outlets that highlighted our company and has brought the industry into the mainstream. We have found that the various types of social media is wonderful to increase revenues. We have used influencers to picture our tents and we have a company that does weekly blogs to keep us relevant. Our website and all the professional pictures have been a huge seller to the business. They have not explored the opportunity to exhibit various locations around the nation further bolstering sales and increased exposure.

The fabrication/custom sewing has small and medium size recurring customers including customers who require prototyping and small run capabilities to get their idea to market. An example is working with some customers that are aiming to go global in the oil industry. This translates into incredible profits for the new owner. Since the subsidiary has not pursued any marketing or advertising, it has the potential to become a substantial force in the industry. The customers list continually grows with little to no effort.

Their current lease has another 4 year but can easily be extended. They have allotted 9,589 square feet at 5.25 per square foot triple net. This has both manufacturing and office space. All the processes have been optimized by implementing a Lean strategy making the business more profitable than other sew shops. The Owners believe that an increase in Marketing and advertising would dramatically increase profitability and allow the company to grow at a rapid pace. The current space has the capabilities to handle a lot more production. We have the room to add 4-5 new seamstresses for regular shift hours, if 2 shifts are added 10-12 seamstresses can be added. The layout of the current space will accommodate this, no need to have extra costs for this. No cost of reconfiguration. We have done the heavy lifting and set up Utah to be ready for large orders and to build stock on regular items.

All the processes have been optimized by implementing a lean strategy making the business more profitable than other sew shops. The Owners believe that an increase in marketing, sales staff, and advertising would dramatically increase profitability and allow the company to grow at a rapid pace. The current space has the capabilities to handle further production or it can be easily outsourced to a vetted contract manufacturer out of state to accommodate growth.

The owners will help transition the business for 3 months or longer as available for a reasonable salary. They have employees that are qualified to handle the design aspects, negotiation the pricing, etc.

This is a unique opportunity because of the size of its potential increase in value to a new owner. This company has huge equity building potential.

Thank you,
Jeff Chapman Eisnaugle
Direct 303-905-7607
Office 303-284-7025
Fax 720-524-6482
jce@companybroker.com

This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections. The information contained in this e-mail message is confidential and may be protected from disclosure. Please be aware that any other use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you have received this e-mail message in error, please reply to the sender and delete it from your computer.

This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.

Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.

Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.

Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.

Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.

Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.

Detailed Information

Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
9,589
Lease Expiration:
N/A
Employees:
7
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Their current lease has another 4 year but can easily be extended. They have allotted 9,589 square feet at 5.25 per square foot triple net. This has both manufacturing and office space. All the processes have been optimized by implementing a Lean strategy making the business more profitable than other sew shops. The Owners believe that an increase in Marketing and advertising would dramatically increase profitability and allow the company to grow at a rapid pace. The current space has the capabilities to handle a lot more production. We have the room to add 4-5 new seamstresses for regular shift hours, if 2 shifts are added 10-12 seamstresses can be added. The layout of the current space will accommodate this, no need to have extra costs for this. No cost of reconfiguration. We have done the heavy lifting and set up Utah to be ready for large orders and to build stock on regular items.
Competition:
Manufacturing in the USA is becoming more and more popular. Overseas manufacturing has become less desirable due to higher material and labor costs, additional tariffs, long shipping times, impractical quality control, long lead times, consistent errors in products, large minimum quantities, and the language barrier. There are very few sewing operations in the US; most are expensive and extremely busy with long production times. With the consistently growing camping industry, this is a great time to be in this business.
Growth & Expansion:
The new owner will have many ways to grow each of these companies by expanding its advertising by utilizing the current resources of the employees, equipment, facility, infrastructure and inventory. The companies have built a solid reputation for over a century and has the equipment, inventory, and room to grow with a new owner. No outside sales have been brought on since the work has always come to them. With the addition of a sales team, the revenue could easily double in the first year. A new owner’s attention would also increase the profitability by focusing on additional marketing and advertising.
Financing:
15%
Support & Training:
The owners will help transition the business for 3 months or longer as available for a reasonable salary. They have employees that are qualified to handle the design aspects, negotiation the pricing, etc.
Reason for Selling:
Wants to spend more time with kids & pursue other opportunity to work from home
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Jeff Chapman Eisnaugle

Business Listed By:
Jeff Chapman

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