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Recession Proof Distributor
Rockland & Bergen Counties |
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This company is a distributor of industrial parts and supplies for industrial tools and machinery. They are authorized to sell for approximately 100 manufacturers. They have around 400 to 500 active customers. No one customer makes up any significant percentage of the business. They are open Monday – Friday 8:30AM to 5:00PM. This company does well in all times. Sales are up from 2006 to 2007 and are flat or slightly ahead in 2008. They employ only 2 full time employees and 1 part time employee. This is a distributor without trucks. Almost all products are drop shipped from the manufacturer or shipped UPS from his warehouses. Business will be run going forward from one location. Current owner will stay on for a few years with an employment agreement to ensure a smooth transition. Great business to buy!!! |
Listing Number: 594
Morris Cohen - Listing Broker
122 Ogden Avenue, Dobbs Ferry, NY 10522
Telephone - (914) 674-9580
E-mail -
mcohen@capitalbbw.com
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| Category |
WHOLSALE/DIST. BUSINESSES |
| Sub-Category |
Durable Goods |
| Asking Price |
$695,000 |
| Gross Sales |
$1,500,000 |
| Cash Flow |
$210,000 |
| FFE |
$50,000 |
| Inventory |
$130,000 (Inventory IS Included) |
| Real Estate |
$0 (Real Estate IS Included) |
| Employees |
2 - Full-Time
1 - Part-Time |
| Facilities |
The business opearates out of 2 locations. In one locatio they lease 1,300 sq ft. In the second location they lease 4,000 sq ft. The company will be combined into the one 4,000 square foot location to reduce costs and allow new owner to better grow the business. |
| Relocatable? |
(Is Relocatable) |
| Home Based? |
(Is Not Home Based) |
| Market Notes |
The business has been around for over 30 years. It is very unlikely that their manufactures would open a new competitor within his marketing areas. So you are pretty much protected from new competition. This industry will do very well in a bad ecomony. Companies can lay off employees, but they need to keep their machinery running. In addition, companies do not buy new machinery during bad times, but they do fix their old machinery. The older machinery gets, the more maintenance they require. This is why this industry is truly recession proof!! |
| Growth Notes |
Tremendous opportunity for growth. The current owner has not done any advertising or marketing in the last 10 years. In addition, he does not have any full time sales people. Most of their exsting 500+ customers don't know the full extent of the lines and products they carry. They don't even follow up with their existing customer base to call them to increase business. All business is either repeat or referral. Tremendous opportunity to grow from within their own customer base. In addition, building a website will allow new owner to bring in new business from all over the country. All products are either dropped shipped or UPS and there are no standard pricing on any products, so price comparisons or shopping for the best price is almost impossible in this industry. Huge growth potential !! |
| Support Training |
Owner will transition the business plus stay on for a long term employement agreement. The owner would replace 1 of the 2 current full time employees. |
| Year Established |
1977 |
| Financing Terms |
SBA financing is available for the right buyer. |
| Reason for Selling |
The owner wants to transition the business to a new owner and then work for another few years. |
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