The business offered for sale is a full service advertising agency. In recent years the company has specialized in providing its services to non-profit organizations throughout the U.S. The repetitive nature of these services has allowed it to develop a standard model that it slightly modifies to meet a particular customer’s needs. By utilizing this basic model the company has been able to deliver results at a lower cost.
The company provides an integrated “one stop” solution that their customers love and competitors find nearly impossible to match.
The owner desires to retire sometime in the next few years. Understanding that a smooth transition is a benefit to their customers, and correspondingly to both the purchaser and seller, the owner is prepared to remain in the business for up to two years.
The company already has customer commitments for over $2,000,000 for 2011.
Likely Acquirers:
• Another advertising agency that can fold this company into theirs, obtaining this company’s very profitable niche expertise and customer base even before benefitting from elimination of duplicate overhead.
• A printing company that can utilize the expertise this company has in quick and efficient turnaround in design-to-print knowledge that it could offer to its customers, along with potentially bringing in a portion of the significant outsourcing of printing this company does. Add to that the very profitable advertising niche this company dominants, likely elimination of some duplicate overhead, makes this a highly attractive acquisition.
PURCHASE PRICE:
The business is offered at $925,000 (firm) free and clear of debt. The seller will consider some financing.
2010 Revenues = $2,580,000 EBDIT = $540,000
2009 Revenues = $2,248,000 EBDIT = $500,000
2008 Revenues = $2,894,000 EBDIT = $621,000
Two owners also take a combined salary of over $350,000 (over and above the EBDIT). |