Barcode System Integration with Nationwide Client Base
With over 1,800 in their customer database!
This barcode system integration company has over 1,800 customers in their database covering diverse industries across the country! Offering consultation and system/product integration, clients are a mix of resellers (55%) and end-users (45%). The bulk of their sales (60-65%) consists of Media/Consumables (labels, thermal transfer ribbons, thermal tags, warehouse signs); they also sell Software (asset tracking, barcode label printing, inventory control/WMS software), and Hardware (barcode scanners, label printers, receipt printers, etc.). Employees include one owner, who assists with order processing, accounting, and general oversight, one Office/Marketing Manager who handles sales, places orders, and manages the website & online marketing development, along with 1 East Coast Sales Manager based out of a home office in Georgia, one PT office assistant, and one subcontractor as needed based in Chicago.
The company currently places their orders with nearly 240 vendors and keeps approximately $35k worth of inventory on hand at any given time. Along with offering a huge selection of products, they also provide printer & scanner maintenance and full-scale nationwide fulfillment services. They pack and ship customer-specific orders daily and distribute the shipments locally as well as nationwide using United Parcel Service and LTL freight companies.
Priced at $865,000, a new owner would see a 135% return on investment in the first year after debt payments. Growth is unlimited, as there are untapped markets across the country. Small businesses all the way up to large retail chains need these services to keep up the rising demands for advanced scanning abilities while maintaining profitability and keeping costs low. The current owner will stay on board for 3-5 years to spend the necessary time to train the new owner; the possibilities for revenue growth are exponential!
Year Established: 2007
Location: Corporate office in Orange County, California; Sales office in Georgia
Service Area: Nationwide, with some international customers
Services: Barcode system solutions & integration, equipment maintenance, fulfillment services
Clients: Over 1,800 in customer database across several different industries including retail, agriculture, fulfillment companies, healthcare, government, wireless companies, etc.; 55% resellers, 45% end-users
Lease: 3,500 sq. ft.: 70% warehouse, 30% office space: $4,900/month
Reason for Selling: Strategic exit planning
Personnel: 3 FT: 1 Owner, 1 Office/Marketing Manager, 1 East Coast Manager (based in Georgia); 1 PT, plus 1 1099 sales rep (based in Chicago)
Seller Training Period: 3-5 years
Growth Opportunities: Increase marketing efforts to include more industries
Current Owners’ Responsibilities: Owner 1: Accounting, Order Processing, General Oversight; Owners 2 & 3: not active in the business
- List Price: $865,000
- 2020 Cash Flow: $228,482
- A/R: $249,472
- A/P: $163,400
*amounts may vary
- Assets: $94,000+
- Equipment: $94,007 – Various electronics, computers, hardware, furniture, etc., plus 1 Forklift ($15k), 1 Air Compressor ($7.5k), and 1 Rewind Table ($20k)
- Inventory: ~$35k at any given time (fluctuates)
- Intangible: Client base covers a variety of industries, large number of repeat clients, solid reputation for excellent customer service
Cash Flow Analysis
|Description of Financial Statement||Tax Return||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$90,410||$31,391||$85,754||$-42,953||$-11,765|
|Compensation to Owner||$108,000||$107,810||$67,700||$44,500||$41,500|
|11% Tax on total W2 Salaries||$11,880||$11,859||$7,447||$4,895||$4,565|
|Seller's Cash Flow = Total Addbacks + Net Income||$228,482||$171,039||$178,013||$40,043||$60,050|
|Profit Margin||11.83 %||10.16 %||10.93 %||3.08 %||4.82 %|
- Year-over-year growth in sales
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