| Asking Price |
$3,500,000 | Inventory |
$400,000** |
|---|---|---|---|
| Gross Income |
$3,200,000 | Real Estate |
$1,000,000** |
| Cash Flow |
$700,000 | Year Established | 1993 |
| FF&E |
$1,750,000* | Employees | 40 |
* included in the asking price
** not included in the asking price
Company is National Medical Devices Contract Manufacturer for OEM s whose products require Certified Clean Room production. Processes are: Rotary Diecutting, Paper Converting, Adhesive Converting, Printing, Laminating, Punch Press, Plastic Injection Molding, Assembly, Packaging. NAICS 33911x - Medical Equipment and Supplies Manufacturing NAICS 32222x - Coated and Laminated Packaging Paper and Plastics Film Manufacturing COMPANY provides Product Research and Development (R&D). Takes identified application need or product idea from conception through mass production. R&D capability is huge competitive advantage. COMPANY sells solutions. Value proposition - Offer best 1) Technically engineered product packaging 2) Customized roll converting presses and production processes that eliminate steps and cost and improve quality 3) Certified Clean Room environment. Company s entire facility is clean-certified vs. specific rooms. ABOVE 3 POINTS supported by A) Production and Quality Assurance Processes and Techniques documented and religiously observed B) Structured Business Processes likewise documented and observed. C) Zealous attention to each customer s service / delivery / inventory management needs. SELLER seeks strong pricing and margins in return for Company s customer focus and quality performance. CUSTOMERS are Original Equipment Manufacturers (OEM s) selling their OEM products through various distribution channels to end-user marketplace. These customers engage contract manufacturers such as Company to produce their products. Customers have their name / brands put on the products during manufacturing. MANAGEMENT TEAM is mature, well-rounded, fully capable of driving Company forward post-sale and achieving the significant growth Seller firmly believes is available to be had. Entire management team is geared to solution selling. They spend significant time seriously experimenting with existing and new production processes.
Attachments: Download additional information (PDF)
Facilities: Entire building (production + office) is a 17,000 square foot Certified Clean Room / Facility. Present production equipment can support a 300% revenue growth with only modest investment in ancillary equipment (about $115,000) Key Production equipment is highly re-engineered (see patent comments). Seller believes will support an outside written appraisal of $1.5 - $1.75 million.
Competition: MARKET-Seller forecasts 09 sales up 10%, 2010 up 20% over 09 NOT at Company s current sales effort level which is NOT what Seller believes is available with aggressive sales. COMPETITION-Seller states competitors can get same end result but can t produce same way as Company. Company has developed one-step on-press in-line rotary die-cutting, inserting, wrapping, sealing. Competitors take 2 or 3 steps. These are protected by 3 Issued and 2 Applied-For Patents; provide measurable quality-increase and cost-decrease advantages.
Growth/Expansion: POTENTIAL - Company is present size because Seller focused on making money; isn t motivated by sales volume. Other companies this age may be larger, few as profitable. Seller is convicted Company grow 3-5x its current size in 3-5 years. Translates to $9 - $15 million. Medical Devices Market will support this growth. SELLER MAKES A LOT OF MONEY - WANTS RETIREMENT, NOT WORK LEVEL TO GROW 3-5X. Offer Memo available gives detailed steps / investment Seller would do if wanted to keep Company and get that growth.
Financing: REQUIRES BROADBRIDGE NDA [Attached] & INITIAL FINANCIAL PREQUALIFICATION
Support/Training: Seller is very willing to stay involved with the Company for the next several years; his firm opinion is that a wise buyer would want him regularly available.
Reason Selling: Seller has done very well for himself and simply wishes to retire.

Kris Kavelaris / Broker
262-369-0787
Broad Bridge, Inc.
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