Business Description
"It starts and ends with Service."
After spending over a week with the senior management team these are the Company mantras that can only be generated by a CEO that has grown a Company over three generations from a single delivery vehicle to a HACCP Certified facility containing over $6MM in assets doing $25,000,000+ in top line revenue spread across their wholly-owned fleet of vehicles. The CEO is 100% shareholder of all critical assets of the Company, including the real estate, all outstanding shares of the parent entity, and subsidiaries of the Company that generate adjusted EBITDA in excess of $2.5MM. A team of seasoned executives that have been with the Company for almost two decades are excited to continue as-is to assist an assigned CEO brought in by the Buyers, or they are equally eager to advance to higher roles should the purchaser decide an active member of their investment team is not required on premise.
The Company has proven itself to be a recession proof business that has thrived during multiple downturns and has emerged stronger on the other side of the last one. In fact, in the 2nd week of 2014 the Company was comfortable to decide "enough is enough" and said goodbye to their largest customer of 27 years because of margin concerns ($5MM in annual sales / 20% of revenues). In the ensuing 50 weeks they not only replaced that $5MM (and more), but also added a more diversified client base of higher gross profit and net profit margin accounts. What the Company presents today is a near bullet proof operation that has a large number of contracted and long term customer accounts and vendor relationships that provide a very low risk profile for any prospective purchaser.
Every single key performance indicator an acquirer would potentially assess has been monitored both on an historical (daily/weekly/monthly/quarterly/yearly) and represents an ongoing daily laser focus of the management team. Gross margin, satellite aided fleet monitoring, inventory turn, waste minimization, 96-camera security with remote access, along with every conceivable critical sales, purchasing and financial reports are forwarded to the CEO's inbox daily. The Company has deployed significant capital reinvestment into best of breed technology tools to assist management in their quest to maintain industry leading operational efficiencies while maximizing customer satisfaction. Management's continual rigorous examination on a holistic operational level makes it near impossible to poach active clients while continually eroding market share from their competitors year after year due to the superior and profitable services provided to their client base.
The Company is poised to expand to a $35 to $40MM operation on site with minimal additional capital investment other than personnel can be added and additional products can be upsold to the existing client base. However, what truly excites the current Seller and the executive team are the future that lies ahead by teaming up with a well-capitalized partner. Nine figure top line sales should be in play with additional strategic expansion initiatives beyond the immediate target area serviced by the Company and by also capturing additional production and distribution efficiencies by growing into a new facility.
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Additional Features
Inventory: Included in asking price
Real Estate: Not included in asking price
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: Turnkey facility, room for expansion.
Competition: The Company has successfully eroded marketshare from all local competitors over time.
Growth & Expansion: Could do $35-$40MM in sales on premise just need to ramp up sales.
Financing: If the price and deal structure is right.
Support & Training: As needed.
Reason for Selling: Liquidity event for sole shareholder.
Ace Business Brokers NDA & Buyer Profile
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