Flooring Manufacturer with Property

Summary Description: Available for acquisition is a Flooring Manufacturer based in San Bernardino California that installs its own flooring systems with their own crews. The Company features a proprietary product which has been successfully installed in over 5,000 facilities throughout its history. In addition, the Company is a certified installer for a number of national manufacturers of resinous flooring. Investment Highlights: • The company customer base mainly consists of general contractors, corporations and independent business owners primarily serving in the educational, healthcare, food and beverage, governmental, retail, and other commercial industries located throughout California, Arizona, and Nevada • Throughout its history, the Company has developed a long-standing customer base of almost 6,000 unique accounts operating across the US. Management estimates roughly 300 recurring customers generate an 86% rate of repeat business. • The Company enjoys a long-standing (40 years) reputation for its focus on offering custom designed flooring solutions, reliable expertise, and providing superior customer support. The Company has an established track record and brand presence and possesses a favorable reputation for performance within its industry. • Historical average profit margin (21.3%), as measured by EBITDA, is higher than that of other companies in the industry. • The Company’s skilled and loyal employees possess in-depth industry experience and extensive expertise in their respective specific disciplines. This affords the Company the ability to maintain optimum control over quality and finish. • Facility is 6,500 sq. ft and the Seller owns the property and will considering selling to a new Buyer Income & Adjusted EBITDA: The Sales in 2021 were $5.093 mm and adjusted EBITDA $6.73k. The Company has a current contract backlog of $1.575 million; the majority of which is expected to be recognized as revenue by fiscal year end. Please note sales in 2019 were $7.067 mm and management attributes the sales peak in 2019 to increases in retail, hospitality, manufacturing, and industrial projects throughout the period. In 2020 and 2021, revenues decreased as a result of the crippling impact COVID-19 had on two of the Company’s core industries: restaurant and education however both industries are showing growth once more and projected sales in 2022 are in the $5.7-$6.0 million range. Investment: The purchase price is $3,750,000. The Company’s position in the market along with successful business history as well as sales growth will lead to different value perspectives among various investors. Parties interested in pursuing this transaction will be required to submit a non-binding proposal detailing the preliminary valuation of the company and suggested transaction structure Investment-Property: The price for the property is $2,600,000. Buyer can acquire the property or the Seller will offer a new lease or the business can be relocated. The building is 6,536 sq. ft with office, shop, and warehouse plus mezzanine. Strategic/Synergistic Acquisition: The established business methodologies are expected to yield growth going forward. The Company offers an extensive customer base for a Strategic or Synergistic Company seeking an acquisition platform or to a buyer seeking growth, perhaps by consolidating other related businesses. The business is relocatable so a Buyer could benefit from substantial saving with overheard and operating expenses which would increase the net income. Location: San Bernardino County, California Year Established: 1982 Number of Employees: 29 Real Estate: Owned Building Sq. Ft.: 6,536 Facilities: Summary Description: Available for acquisition is a Flooring Manufacturer based in San Bernardino California that installs its own flooring systems with their own crews. The Company features a proprietary product which has been successfully installed in over 5,000 facilities throughout its history. In addition, the Company is a certified installer for a number of national manufacturers of resinous flooring. Investment Highlights: • The company customer base mainly consists of general contractors, corporations and independent business owners primarily serving in the educational, healthcare, food and beverage, governmental, retail, and other commercial industries located throughout California, Arizona, and Nevada • Throughout its history, the Company has developed a long-standing customer base of almost 6,000 unique accounts operating across the US. Management estimates roughly 300 recurring customers generate an 86% rate of repeat business. • The Company enjoys a long-standing (39+ years) reputation for its focus on offering custom designed flooring solutions, reliable expertise, and providing superior customer support. The Company has an established track record and brand presence and possesses a favorable reputation for performance within its industry. • Historical average profit margin (21.3%), as measured by EBITDA, is higher than that of other companies in the industry. • The Company’s skilled and loyal employees possess in-depth industry experience and extensive expertise in their respective specific disciplines. This affords the Company the ability to maintain optimum control over quality and finish. • Facility is 6,500 sq. ft and the Seller owns the property and will considering selling to a new Buyer Income & Adjusted EBITDA: The Sales in 2020 were $5.678 mm and adjusted EBITDA $1.064mm. Sales in 2021 from January to September were $4.007 mm and adjusted EBITDA $632k. The Company has a current contract backlog of $1.5 million; the majority of which is expected to be recognized as revenue by fiscal year end. Please note sales in 2019 were $7.067 mm and management attributes the sales peak in 2019 to increases in retail, hospitality, manufacturing, and industrial projects throughout the period. The following year, revenues decreased as a result of the crippling impact COVID-19 had on two of the Company’s core industries: restaurant and education however both industries are showing growth once more. Investment: An investment “asking price” has not been established. The Company’s position in the market along with successful business history as well as sales growth will lead to different value perspectives among various investors. Parties interested in pursuing this transaction will be required to submit a non-binding proposal detailing the preliminary valuation of the company and suggested transaction structure. Investment-Property: The price for the property is $2,100,000. Buyer can acquire the property or the Seller will offer a new lease or the business can be relocated. The building is 6,536 sq. ft with office, shop, and warehouse plus mezzanine. Strategic/Synergistic Acquisition: The established business methodologies are expected to yield growth going forward. The Company offers an extensive customer base for a Strategic or Synergistic Company seeking an acquisition platform or to a buyer seeking growth, perhaps by consolidating other related businesses. The business is relocatable so a Buyer could benefit from substantial saving with overheard and operating expenses which would increase the net income. Growth & Expansion: Expansion into regions where the Company does not currently have a strong presence is an opportunity for growth cited by management. Throughout its history, the Company has strategically entered new markets that could be profitably served by the Company’s existing flooring capabilities. Most recently, the Company has targeted the pharmaceutical and biotech industries as lucrative sales channels to increase revenue. Furthermore, the restaurant industry is a large portion of the Company’s business portfolio, and both have huge growth opportunities in that market segment.