Testing & Manufacturing for Cosmetic Industry

Chicago, IL (Cook County)

Seller Financing Available
Testing & Manufacturing for Cosmetic Industry
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Asking Price: $1,790,000

Cash Flow: $480,578

Gross Revenue: $1,335,928

EBITDA: N/A

FF&E: $160,000

Inventory: N/A

Established: 2003

Testing & Manufacturing for Cosmetic Industry

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Business Description

Located in the Chicago Metropolitan area, this manufacturer of body and hair care products earns a 36% profit margin on over one million in revenues annually. This well-trained and well-educated team works with some of the largest and most recognized consumer product companies in the United States (90%) and internationally (10%). The company manufactures all types of hair products and many skin care products. Contract manufacturing is the primary revenue stream (65%), with other service activities (35%) such as product formulation and development, expert testing, evaluating competitive products, salon studies, and determining shelf life of products. Products are manufactured in any size bottle, jar, or tube on high speed filling lines. With hundreds of proprietary formulations in storage, this company can reverse engineer competitive brands, create new products, and modify existing lines to improve performance or reduce cost. Testing includes focus groups, instrumental data on hair fibers or hair swatches, objective salon testing, and home use testing. The owner focuses on maintaining FDA compliance, assisting the formulation and manufacturing teams, business development and financial oversight.

Members of this experienced team include chemists, manufacturing technicians, and many contracted stylists. Operating from a 7,000 square foot facility that houses a manufacturing plant, testing salon, formulation and testing laboratories, the business has all equipment necessary to maintain or even increase production. Exploring CBD use in products is the next big leap for this team as these beauty care items are forecasted to surge in popularity in the coming years. The strategic hiring of a sales representative could help to generate new contracts and industry connections to build upon and impact revenues positively.

Assets Included in Purchase*: $195,000
Equipment: $160,000: Furniture, fixtures, testing equipment, operating equipment
Inventory: Raw materials, packaging and some finished goods. Approximate cost: $35,000
Intangible Assets: Long-term relationships with major industry beauty brands, institutional knowledge of the testing process, well-educated and well-trained team
Additional asset: Proprietary formulations
*amounts may vary, assets may be depreciated, replacement cost, or fair market value

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Detailed Information

Location:
Chicago, IL
Employees:
8
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Lease: 7,000 sq. ft.: Office, manufacturing area, storage, labs and testing areas
Competition:
Location: Chicago Metropolitan Area Service Area: United States client base (90%), international clients (10%) Services: Manufacturing (65%), testing and formulation of beauty products (35%%) Clients: Range from major nationwide beauty brands to small independent companies
Growth & Expansion:
Growth Opportunities: Explore formulations and manufacturing of CBD product lines; invest in a sales team to build client contacts
Financing:
16% Seller Financing
Support & Training:
Seller Training Period: The owner will remain on the team for up to 1-2 years Current Owners’ Responsibilities: Formulation assistance and oversight, FDA compliance oversight and financial management
Reason for Selling:
Exit strategy
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Cortney Sells

Business Listed By:
Cortney Sells

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