Vermont Direct Marketing Service Provider

Reason for Selling:

Retirement.

Overview of the Business:

This is an attractive service business with a bright future. The industry itself is still in its infancy. Growth is occurring naturally as the public becomes better educated of the saving that can be accomplished through utilizing the services of these companies. Future growth of this company could be significant if a strategic sales and marketing plan were implemented. The equipment and facilities are both underutilized. If a new owner were to continue to operate this business as it has been, there are still very attractive cash flows and returns on investment. This business is easily learned through training which the seller is committed to provide. The business has acquired state of the art equipment to aid in the growth. No major new capital expenditures have been identified. A recent building purchase provides all the space required for the immediate future. There is a high repeat business from existing customers and new business is being developed all the time. Since referrals seems to be the main reason behind the historical growth of the company, the customer base appears to be happy with the services and should continue so long as quality and service remain. Sales of over $1,200,000 have produced very attractive cash flows for the owners.

Property Features and Assets:

The sellers own the real estate personally and lease it back to their corporation. A buyer will have the option to purchase the real estate if desired. The facility sits on approximately ½ acre of land. The one floor building has approximately 8,300 square feet of space. The space is divided into offices, a conference room, production, loading truck bays and storage areas. The square footage is sufficient to allow for considerable growth. There is adequate parking for employees and customers on site. The location is convenient to the interstate and major traffic routes in the area. The equipment is state of the art and many pieces were recently acquired. No additional capital expenditures have been identified.

Market Competition and Expansion:

These businesses tend to be geographically centered because of transportation issues with the customers, unless the business is large enough to do significant volume. The business is the only independent business of this type operating in the immediate area. The other two centers are owned by synergistic companies and do not take on independent service jobs. One competitor just went out of business. The other closest competitors are 45 miles away. Only two of those seven are of any size, and both are owned by large synergistic companies. Of the remaining five, four are owned by small to mid sized synergistic companies. The lack of independent competition in this business’ immediate geographic market is considered a huge advantage.

Additional Details: