Opportunities
96% Recurring Client Base for Auto-ID & Systems Integrator
Sales and service for clients in warehousing, logistics and distribution!
Specifications
The average client tenure for this Georgia based auto Id and systems integrator is 15 years. With a 96% recurring client base, this value-added reseller (VAR) focuses on traditional bar code technology, RFID technology, process improvement, equipment sales and service and custom software solutions. This company has also developed a Warehouse Mgmt. system that could be sold for $45K or if further developed for $60K.
From solution concept to the design, development and implementation, their experienced team can deliver traditional mobile and wireless solutions. 60% of their revenue comes from sales of products like data capture equipment, printing equipment and labels while the remaining 40% is from services like custom software and web development, hardware repair and network installation. Their typical network installation project runs from $80K - over $250K with this company installing as much as 1M square feet of networks for their clients and in any given year completing 10-15 projects. Their networking portfolio encompasses small businesses to Fortune 500 facilities across the country with an impeccable track record.
Primarily working with manufacturers, wholesalers, logistics and distribution, this company has been helping their clients succeed for 15 years by providing custom tailored solutions and results as promised and on time. With over 20 years professional software and database development expertise in-house, their staff's strong coupling of technical and business knowledge allows them to provide clients with world class solutions to their needs. The team consists of 7 full time employees including a senior VP, office manager, software developers with decades of experience and a process improvement resource. They also have 2-3 part time technicians who work for them as needed.
This company is proud to partner with some of the most successful and regarded companies in the IT industry like Zebra, Data Logic, Honeywell and Epson to name a few. This company has an outstanding opportunity for growth through development and upgrade of their WMS as well as going after more network installation projects.
Business Highlights
- Year Established: 2005
- Location: Georgia
- Service Area: Georgia and surrounding area
- Services: Product sales - 60% (Mobile computers & scanners, thermal label printers, ribbons), Services – 40% (Custom and web development, hardware repair & network installation)
- Clients: Corporate clients focusing primarily in manufacturing, warehousing, Distribution and Logistics
- Lease: Own 8,800 square feet building; 11 offices, 1 meeting room, 1 conference room. Includes 800 square feet unfinished warehouse space.
- Reason for Selling: Retirement Planning
- Personnel: 2 owners, 7 FTE (VP, office manager, web developer, process engineers), 2-3 part time technicians
- Seller Training Period:6 months – 1 year; one of the owners is willing to stay as employee for 3-5 years
- Growth Opportunities: Go after more network installation projects, develop and sell WMS
- Current Owners’ Responsibilities: Management oversight, client relationships, accounting
Financial Highlights
Gross Sales
- 2020: $3,841,847
- 2019: $6,420,954
- 2018: $7,670,715
Cash Flow:
- 2020: $490,422
- 2019: $355,385
- 2018: $804,167
Assets of Business
- Assets: $110,000
- Equipment: $65,000
- Intangible: $45,000 -- Warehouse management system – application software
Cash Flow Analysis
| Description of Financial Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Notes |
| 2020 | 2019 | 2018 | 2017 | ||
| GROSS SALES | $3,841,847 | $6,420,964 | $7,670,715 | $3,167,182 | |
| Net Income Shown on Financial Statement | $147,878 | $213,925 | $642,858 | $17,200 | |
| ADDBACKS | |||||
| Compensation to Owner | $180,000 | $0 | $0 | $0 | |
| Wife's Salary | $43,560 | $44,222 | $39,528 | $37,453 | |
| 11% Tax on total W2 Salaries | $24,592 | $4,864 | $4,348 | $4,120 | |
| Depreciation | $0 | $7,463 | $7,098 | $12,725 | |
| Interest | $962 | $3,197 | $21,871 | $23,947 | |
| Insurance | $25,817 | $16,999 | $18,036 | $21,063 | |
| Donations | $2,095 | $3,232 | $1,795 | $2,088 | |
| Meals & Entertainment | $27,239 | $22,131 | $24,285 | $14,851 | |
| Supplies | $0 | $8,853 | $1,178 | $625 | |
| Auto-Personal Use | $41,213 | $17,709 | $22,655 | $21,682 | |
| Supplies | $18,886 | $16,529 | $7,558 | $7,540 | |
| Rent | $-21,820 | $-3,739 | $12,957 | $-10,144 | |
| TOTAL ADDBACKS | $342,544 | $141,460 | $161,309 | $135,950 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $490,422 | $355,385 | $804,167 | $153,150 | |
| Profit Margin | 12.77 % | 5.53 % | 10.48 % | 4.84 % |
Growth Opportunities
This company has opportunities to grow particularly in the network installation space.
- They can grow by going after more network installation projects.
- WMS system - software application – warehouse management system – it is a piece of software that could be developed and resold. As it is right now, the software could go for $30-$45K and if developed further, could sell for $50 - $60K
- SWA and IWLA – if there was someone dedicated to outside or inside sales, there is tremendous opportunity to grow business
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 3 year average (18-20) cash flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 3 year average (18-20) cash flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857