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Barcode System Integration with Nationwide Client Base

With over 1,800 in their customer database!

CASH FLOW
$228,482

Specifications

  • Price
    $865,000

  • Revenue
    $1,930,698

  • Cash Flow
    $228,482

  • Location
    Corporate office in Orange County, California; Sales office in Georgia

  • Service Area
    Nationwide, with some international customers

  • Reason for Sale
    Strategic exit planning

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!

Business Highlights

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

Financial Highlights

  • List Price: $865,000

  • 2020 Cash Flow: $228,482
  • A/R: $249,472
  • A/P: $163,400

*amounts may vary

Assets

  • 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 StatementTax ReturnTax ReturnTax ReturnTax ReturnTax ReturnNotes
20202019201820172016
GROSS SALES$1,930,698$1,682,661$1,628,583$1,301,975$1,245,150
Annualized
Net Income Shown on Financial Statement$90,410$31,391$85,754$-42,953$-11,765
ADDBACKS
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
Depreciation$1,491$124$0$93$0
Interest$97$3,163$7,937$22,142$6,341
Insurance$6,591$7,909$6,494$5,738$7,709
401k$4,320$4,546$2,031$1,335$1,245
Auto Expense$5,693$4,237$650$4,293$10,455
Draw$0$0$0$0$0
TOTAL ADDBACKS$138,072$139,648$92,259$82,996$71,815
Seller's Cash Flow = Total Addbacks + Net Income$228,482$171,039$178,013$40,043$60,050
Annualized
Profit Margin11.83 %10.16 %10.93 %3.08 %4.82 %
  • Year-over-year growth in sales

Valuation

Funding Example

Purchase Price:

$865,000

$
%
OR
$
%
OR
$
Years
%

Bank Loan Needed: $

Years
%
$
$
$
$
$

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:
2020 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020 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: %

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210 N 78th St. 2nd Floor
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The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.