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Opportunities

Leadership & Safety Training – $3.4M in Projected Revenue

With a 49% profit margin!

CASH FLOW
$782,633

Specifications

  • Price
    $1,915,000

  • Revenue
    $1,578,221

  • Cash Flow
    $782,633

  • Service Area
    Northern Louisiana: 80% within 150-mile radius, 20% nationwide

  • Profit Margin
    49%

  • Intangible Assets
    Word-of-mouth referrals, 100% positive feedback from customers, solid reputation in the area

With a 49% profit margin and over $3.4M in projected revenue for 2021, this executive leadership & safety training company is already poised to increase their revenue by more than $2M! With a client base that consists of several manufacturing plants that have grown exponentially in the last year, the demand for safety training is through the roof. The company has a very healthy list of grants already approved, as well as a significant list of grants submitted and waiting for approval that will occupy much of 2021. There are also a large number of non-grant training and project initiatives that will positively impact future revenue. The owner will stay on for 2 years and carry 22.5% to prove a vested interest. Personnel includes the 2 owners, plus 4 certified trainers, 2 grant writers/managers, and 1 office coordinator; everyone on staff is cross-trained. Holding steady at a 95% customer retention rate, their services include leadership training, professional development, executive coaching, and safety training. 80% of their business is within a 150-mile radius, while the other 20% of their work is nationwide.

 

Working out of a 3,600 sq. ft. office space at $2,950 per month and no inventory, the owners’ operating costs are extremely low. Assets include 5 vehicles used for training jobs that require travel, along with office furniture, fixtures, and equipment. The company’s typical sale size is $2,500-$4,500 per training session, depending on travel requirements. This company is the only private training organization that is partnered with public entities, giving them a huge strategic advantage in the grant world by allowing them to be able to utilize their platform and write more grant dollars than their competitors. Their grant writing managers work with businesses to identify training needs, write, and submit the application, and manage grant training and fiscal responsibilities.

 

Priced at $1,915,000, there is no slowdown in sight for this top notch company! Word-of-mouth referrals and 100% positive feedback from customers have given them a rock-solid reputation in the area. Working to promote e-learning, as well as looking into selling their training materials would certainly lead to revenue growth.

Income Analysis

  • Customers pay $2,500 per 8-hour training session

     

  • If the training requires travel, customers pay $2,750 per session plus expenses, plus $750/day required for traveling there and back

Business Highlights

  • Year Established: 2002
  • Location:  Lincoln Parish, Louisiana
  • Service Area: Northern Louisiana: 80% within 150-mile radius, 20% nationwide
  • Services: Leadership training, professional development, executive coaching, safety training
  • Clients: Businesses seeking executive leadership development, manufacturing plants seeking safety training
  • Lease: 3,600 sq. ft. space: 8 offices, conference room, kitchenette ($2,950 per month including utilities)
  • Reason for Selling: Retirement 
  • Personnel: 9: 2 owners + 4 certified trainers, 2 grant writers/managers, 1 office coordinator
  • Seller Training Period: 2 years
  • Growth Opportunities: Promote e-learning, sell training materials
  • Current Owners’ Responsibilities: General management & oversight

Financial Highlights

  • List Price: $1,915,000
  • Gross Sales:
    • 2021 Annualized: $1,578,221
    • 2020: $1,244,823
    • 2019: $1,421,406
    • 2018: $1,463,629

       

  • Cash Flow:
    • 2021 Annualized: $782,633
    • 2020: $436,331
    • 2019: $509,174
    • 2018: $497,540
    • 2017: $628,913

       

  • Assets Included in Purchase:
    • Equipment: $23,754: Office furniture, computers
    • Vehicles: $170,768: 2020 Subaru Ascent, 2017 Ford Super Duty, 2017 Ford F-150, 2015 Toyota Tacoma, 2013 Ford Explorer
    • A/R: $53,335
    • Intangible Assets: Word-of-mouth referrals, 100% positive feedback from customers, solid reputation in the area

*amounts may vary

Clients

  • Businesses seeking executive leadership development
  • Manufacturing plants seeking safety training

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Executive coaching
  • Strategic planning
  • Leadership development
  • Team building
  • Succession development
  • Sales training
  • OSHA training

Personnel

  • 2 Owners
    • CEO / President
    • CFO / VP Grant Management
  • 2 Senior Grant Managers
  • 4 Certified Trainers
    • 1 Senior Safety Trainer
    • 1 Senior Corporate Trainer
    • 2 Corporate Trainers
  • 1 Office Coordinator: material development, grant coordinator

Growth Opportunities

  • Promote e-learning
  • Sell training materials

Valuation

Funding Example

Purchase Price:

$1,915,000

$
%
OR
$
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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:
4-year average cash flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
4-year average 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
Omaha, NE 68114

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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.