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Opportunities

Third Party Logistics, Order, Fulfillment & Manufacturing Support

$52M in committed contractual revenue for 2021!

CASH FLOW
$5,977,658

Specifications

  • Price
    $26,000,000

  • Revenue
    $40,006,761

  • Cash Flow
    $5,977,658

  • Location
    Nevada

  • Service Area
    Nationwide

  • Employees
    125+: Includes CEO, COO, VP, Director of Business Development, HR Director, Accounting Director, plus Project Managers, General Managers, forklift operators, packers, material handlers, warehouse managers

Foreign Trade Zone on premises! This third-party logistics business has been well-established in Northern California for over 35 years at eight different locations and has $52M in committed contractual revenue for 2021. Providing manufacturing support, warehousing, order fulfillment, transportation management, and customized supply chain solutions, this company has a solid foundation and relationships with government and industry organizations. The team of over 125 highly qualified and experienced personnel includes the leadership team, plus project managers, general managers, forklift operators, packers, material handlers, and warehouse managers. The current owner is retired and lives out of state. There are 2 funding options, with a higher cash a close providing at $3.5M discount.

Manufacturing support includes raw material kitting, lean production line manufacturing, sequencing, build & test process, and vendor managed inventory. Warehousing capabilities are comprised of customized storage options, customized receiving, digital tracking, and temperature stability. The company prides itself on quality order fulfillment by providing product handling expertise, branded packaging, accurate documentation, and they use EDI (Electronic Data Interchange) software to ensure accurate order processing and fulfillment. They have extensive knowledge of packing, crating, and shipment requirements for different countries. Handling transportation needs, whether local, regional, statewide, national, or global, has been one of many ways this business has built a solid reputation. The company meets the needs of well-known high-tech clients and is in the process of expanding business into Pharma programs and specialized designated warehousing for clients.

A few growth opportunities would be to expand pharmaceutical accounts, more fully utilize the foreign trade zone on premises, cover more needs of current clients, and develop more dedicated specific warehousing for specific clients.

Business Highlights

  • Year Established: 2004
  • Location: 8 locations in Northern California with nationwide service area
  • Services: Manufacturing support, warehousing, order fulfillment, transportation management, supply chain solutions
  • Clients: Domestic and international clients ranging from manufacturing to technology to pharmaceutical
  • Typical Contract Length: 3-5 years; two major contracts overs 15 years, several over 10 years
  • Certifications: Foreign Trade Zone (FTZ), 3PL Provider – Pharam, Western Regional Minority Supplier Development Council – Minority Business Status, Supplier Clearing House—Minority Business Enterprise, ISO 9001:2015 and TSA Certified
  • Reason for Selling: Retired out of state 2 years ago
  • Personnel: 125+: Includes CEO, COO, VP, Director of Business Development, HR Director, Accounting Director, plus Project Managers, General Managers, forklift operators, packers, material handlers, warehouse managers
  • Seller Training Period: 12-18 months, if desired
  • Growth Opportunities: Expand pharmaceutical accounts, more fully utilize the foreign trade zone on premises, cover more needs of current clients, and develop more dedicated specific warehousing for specific clients
  • Current Owner’s Responsibilities: Retired, lives out of state

Financial Highlights

  • List Price: $26,000,000
  • Gross Sales:
    • 2020: $40,006,761
  • Cash Flow:
    • 2020: $5,977,658
  • Assets Included in Purchase*
  • Equipment: ~$3.3M Office equipment, furniture, fixtures, computers, medical equipment, trade shows equipment, tractors & trailers, forklift & generator A/R: $3.5M on average

 

*amounts may vary, assets may be depreciated, replacement cost, or fair market value

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnTax ReturnTax ReturnNotes
20202019201820172016
GROSS SALES$40,006,761$48,417,966$68,544,313$60,625,391$49,788,992
Net Income Shown on Financial Statement$2,727,689$6,586,031$7,415,590$3,107,320$2,342,983
ADDBACKS
Compensation to Owner$329,505$153,271$151,040$250,771$157,572Lives out of state; no replacement needed; President in place
Depreciation$203,580$0$599,994$1,823,061$2,108,317
Interest$0$38,229$160,860$171,511$64,848
Depreciation & Amortization$0$704,003$0$0$0
11% Tax on total W2 Salaries$36,246$16,860$16,614$27,585$17,333
One-Time Income$0$-229,000$0$0$0One-time favorable income as a result of discontinued operations - due to recaptured depreciation and reserve accounts being closed
COVID Expense$200,000$0$0$0$0April & May contain approximately $100,000 each in one-time COVID related expenses that were not reimbursed by customers
Commission $2,620,026$775,809$0$0$0
Bonus$-150,000$0$0$0$0to president
Meals$6,226$40$0$0$0
Auto / Office$4,386$0$0$0$0
TOTAL ADDBACKS$3,249,969$1,459,212$928,508$2,272,928$2,348,070
Seller's Cash Flow = Total Addbacks + Net Income$5,977,658$8,045,243$8,344,098$5,380,248$4,691,053
Profit Margin14.94 %16.62 %12.17 %8.86 %9.42 %

  • Projections:
    • In March 2021, this company signed another 5-year contract with its highest source of revenue. This begins June 1st, 2021.
    • Committed contractual revenue for 2021 is $51,976,451. If they were not to receive any more business in 2021, they will have $52M in revenue.
    • Taking a 5-year cash flow profit margin average, which is 12.5%, on the $52M of revenue, results in the 2021 profit being $6.5M.
  • Sellers Cash Flow Analysis: 2018 was an abnormally high revenue year. During the last 2 quarters of 2017 and all of 2018, the company supported one customer’s requirements for a project during a huge ramp-up that required the company to 1. Add 400 employees 2. Add an additional 3rd shifts 3. Purchase and operate 4 VLM (vertical life machines systems) and 2 mobile robots. That project has moved to another providers. The company continues to support the customer.

Clients

  • Large international clients ranging from pharmaceutical to manufacturing

 

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

Services

  • Manufacturing Support
  • Warehousing
  • Order Fulfillment
  • Transportation Management
  • Customized supply chain solutions

Personnel

  • 125+: includes CEO, COO, Vice President, Director of Business Development, HR Director, Accounting Director, plus Project Managers, General Managers, forklift operators, packers, material handlers, warehouse managers, etc.

Growth Opportunities

  • Expand to low-tech industries that don’t require special certifications

Valuation Details

Funding Examples & Timeline

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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