Profitable Wood Pallet Manufacturer with Real Estate for Sale

Houston, TX (Harris County)

Profitable Wood Pallet Manufacturer with Real Estate for Sale
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Asking Price: $3,200,000

Cash Flow: $467,638

Gross Revenue: $1,840,012

EBITDA: N/A

FF&E: $450,000

Inventory: $200,000

Real Estate: $1,300,000*

Established: 1999

*not included in asking price.

Profitable Wood Pallet Manufacturer with Real Estate for Sale

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Business Description

Established in 1999. This 19-year-old business specializes in the manufacturing of new and used wood pallets, crates and lumber. Business currently operates out of two separate locations miles from each other. Seller owns the primary location which sits on 2.48 acres land with two standing warehouses which total 13,000 sq. ft. Additional location is currently leased at a low rent.

Business has been profitable since second owner purchased back in 2001. In 2017, sales reached $1,819,274 with a cash flow of $467,638. Current sales in the first six months of 2018 reflected revenues of $970,959. Seller is expecting to exceed $2 Million in sales with more than $500K in cash flow for the full year of 2018.

Owner is looking to retire. Both business and the real estate are to be sold together. The business is listed at $1,900,000, and the real estate is listed at $1,300,000. The COMBINED sale of this business and the real estate is listed at $3,200,000.

This includes furniture, fixtures and equipment valued at approximately $450,000 and operating inventory valued at approximately $200,000.

Liquid Assets, Accounts Receivable, Accounts Payable, and other liabilities are not being transferred and are not included in the price of the business.

This is an excellent opportunity for those who want to acquire a profitable manufacturing business.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Not included in asking price
Building SF:
13,000
Employees:
12
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Business operates out of two separate locations only a few miles apart from each other. The primary business location sits on 2.48 acres of land with two ware-houses for a combined 13,000 sq. ft. of warehouse space. This property is for sale and must be purchased with the sale of this business. The second operating location sits on approximately 1-acre of land, with an office of 1,500 sq. ft. Currently leased a low monthly rate of $960. Business was first established in 1999 by the original owner who then sold the business to the current owner in early 2001. In mid-2008 the main 2.48-acre operating facility was acquired along two warehouse buildings with a combined square footage of 13,000 sq. Ft.
Growth & Expansion:
Due to steady growth in US consumer spending, demand for pallets has increased over the past five years. The wood still dominates the pallet market due to its lower cost. Over the five years to 2022, industrial production and consumer spending are expected to continue rising, fueling revenue growth. Especially, the recovering oil & gas industry will bring more demands for pallets in Houston area. As the Houston economy continues to thrive in the oil & gas sector, demand for pallet manufacturing increases. Business is currently operating from a combined existing loyal client base and new client base generated from internet advertisement and referrals. Adopting additional marketing practices and initiatives could greatly improve sales and increase revenue.
Support & Training:
4 weeks
Reason for Selling:
retiring
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Austin Zhao

Business Listed By:
Austin Zhao

Transworld Business Advisors

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Sponsoring Broker:
Gerald G. Brisson, CBI, M&AMI, CMAP

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