Acquisition Opportunity. Building Materials Supply Retail and Warehouse

Transcription

1 Acquisition Opportunity Building Materials Supply Retail and Warehouse 2018 For more information, please contact: Scott Martin THIS SUMMARY DOES NOT CONSTITUTE AN OFFERING TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY

2 Purpose Black Commercial, Inc. ( Black Commercial ) has prepared this Acquisition Opportunity to assist interested parties in determining their interest in pursuing a potential acquisition of the Company. This Acquisition Opportunity is in no way an offering to buy or sell any securities associated with or pertaining to the Company. Inquiries and Next Steps Black Commercial is acting as the Company s exclusive advisor, and its fees are paid entirely by the seller. Accordingly, please note that all inquiries and follow-up must be coordinated through Black Commercial and its representatives. All parties who are interested in pursuing this transaction should contact Black Commercial at the contact information provided on the cover. Upon your request, we will provide a Non-Disclosure Agreement to you. Once the signed agreement has been received by Black Commercial, we will be able to disclose the name of the Company and provide you with a full memorandum. The Company Originally established in the Inland Northwest in 1993, the Company is owned and operated by an individual who has been involved in the business for over 20 years, providing a strong resource to the residential construction industry in the Inland Northwest. Facility The Company operates from five centrally located warehouse and storage yard spaces; three of which are owned by the sole stockholder and two of which are leased from non-related third parties. The facilities and land are not included in the transaction, and new lease agreements will be negotiated. Page 1

3 Financial Profile The Company s 2017 revenues were $2,500,925, netting adjusted Earnings Before Interest Taxes and Depreciation (EBITDA) of $346,318. Revenue has fluctuated since 2013, while cash flow has increased annually with an average growth rate of 7.9 percent over the five-year period. Management expects a 3.9 percent increase in revenues in What It Does The Company is C corporation established in 1998, but the business was founded approximately 5 years earlier, to supply building materials to the residential construction and remodel market. Markets The Company sells to a customer base within a 300 mile radius of its main warehouse and retail space. Customers are primarily residential homebuilders and a small percentage of contractors, many who are major repeat customers. The Company is well established and respected in the community with very little competition due to the uniqueness of the products and special request services. The Company maintains good standing with customers in the areas of supply, quality of product, customer service and variety of readily available inventory. The Company uses local media for advertising through radio and television commercials, billboards, signage at sporting events and flyer distributions to potential owner/builder(s) for new and remodel construction. The Company has the potential to expand sales and revenues beyond its current customers with increased sales and warehouse staffing. Page 2

4 Organization and Personnel The Company is owned by a President/CEO. The President manages sales, finances, employees and general oversight. In addition to the President, the Company employs a full time bookkeeper, shop manager, several customer service sales representatives and five warehouse staff. There are over fifteen total employees, including seven who have been employed 6-14 years. The Owner will consider staying on during the transition of the business for an agreed-upon time. Strengths Unique products with very little local competition Great reputation with the community and repeat customers Stable non-seasonal sales Slight effort in marketing could increase sales All equipment is owned and in good working condition Stable committed employees Challenges New Owner/GM will be needed following a transaction and a reasonable transition time o Responsibilities currently are and could continue to be covered by one officer. Some training will be required of new Owner due to the specialty of the business. Opportunity exists to streamline processes and use of technology to increase sales and profitability. Page 3

5 Reason for Sale After several years of service and devotion, the owner wishes to divest the Company with plans to retire and pursue other interests. Next Steps If you are interested in discussing this opportunity further, please call: Scott Martin at or We will provide you with an Investigation and Non-Disclosure Agreement for your review and signature. Once received, we will then provide you with a complete narrative, document support and financial statements. Page 4

6 Schedule 1 Inventory $3,487,362 Current Liabilities $54,681 Prepaid Expenses 43,992 Non-Current Liabilities 0 Net Fixed Assets 84,226 Equity 3,571,999 Other Assets 11,100 Balance Sheet (at estimated Fair Market Value) As of December 31st Total Assets $3,626,680 Total Liabilities and Equity $3,626,680 Page 5

7 Schedule 2 Normalized Historical and Pro Forma Income Statement As of December 31st Estimated Company Sales $2,767,619 $2,716,550 $2,793,511 $2,634,375 $2,500,925 $2,600,000 % Growth N/A -1.85% 2.83% -5.70% -5.07% 3.96% Compound Annual Growth Rate -2.50% COGS 1,695,483 1,538,401 1,332,198 1,173,271 1,093,997 1,430,000 % of Sales 61.26% 56.63% 47.69% 44.54% 43.74% 55.00% Adjusted EBITDA -73,780 82, , , , ,000 % of Sales -2.67% 3.05% 12.45% 12.86% 13.85% 13.00% Page 6