The Veld Group Listings: Profitable Mail Presort Business

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Profitable Mail Presort Business - San Bernardino, CA.

Industry Description	Presort Mail Services	SIC	7389
Days Open	Mon - Fri	Year Established	1996
Hours of Operation	8am / 10 am ≠ 9 pm	Years Owned	1996
Full-time Employees	19	Part-time Employees	4
Other Notes
Hours/wk by Owner	Approx. 25 hrs/wk	Owners Duties	Mngt. Oversight
Skills / Licenses Reqπd	None	Training Offered / Cost	4 wks @ 40 hrs/wk
Non-Compete Terms	5 Yrs; S. California

Exec. Summary

Lease / Bldg. Info.	Lease	Monthly Rent	$3,958
Lease Commenced	1996	Deposit	$2,106
Lease Expires	2008	Term & Option	In final 5 yr option
Bldg./Area Description	Industrial	Square Footage	5,850
Seats, Pkg, Zoning, etc.

Reason for Sale	Owner seeks capital to open an alternate business out of state
Financial Summary	Current Yr. Annual	2003 / Owner to Prove	2002 / Owner to Prove
Gross Revenue	As prior years	$2,610,107	$2,851,945
COGS		$864,463	$1,106,238
Rent / CAM		$48,000	$48,000
Payroll		$365,475	$378,104
Net Profit (before tax)	(Per Tax Returns!)	$724,092	$571,234
Discretionary Cash		$808,612	$866,045

Expense Breakdown

Included in Sale	Assets		Liabilities
FF&E Included	$700,000	Lease Obligations	$10,000/mo for 20 mos.
Inventory Included	NA	Debt Included	$0
Other Assets Included	$0	Other Liabilities	$10,000 (customer dep.)
Working Capital (not incl)	TBD	Return on Sale Price

Asking Price	$4,500,000	Owner Financing/Terms	Owner will consider
Earnest Money Dep.	$20,000	Down Payment	$2,000,000

Opportunity Summary

Headline

Profitable Mail Presort Business - San Bernardino

Summary

This presort mail facility located in greater San Bernardino County is available for potential acquisition. The company, which provides presort mail services, as well as a small amount of ancillary services such as inserting, labeling, folding, and tabbing prides itself on an extremely loyal customer base and a stimulating work environment that has resulted in low employee turnover. Current revenues are $2.6 ml, with discretionary revenues of approximately $808,000. With growing year over year revenues, customer contracts in place, and an annual reported profit of $700,000+, this business ideal for a suitor seeking a high margin return. The owner is willing to finance a portion of the sale over $2.0 million with highly favorable terms.

Facilities / Assets

This firm employs approximately 20 employees and operates out of a 10,000 square foot facility. All equipment is relatively new, purchased within the last 8 years, with current fair market value in excess of $650,000.

Competition

Competition in the presort mail industry is deemed to be medium to high. The closest competitor is in Anaheim and does not pose a significant threat due to the importance of operating in a regional market. The Company does have contracts with all of its major customers.

Growth Potential

This firm operates at 50% capacity with only 1 of the 2 sorting machines operating at a time. Management indicates new clients are selectively signed and that price breaks are not necessary to attract new business.

Other

Management attributes the company's tremendous success to integrity and top-quality services.

8721 West Sunset Blvd. • Suite 103 • Los Angeles, CA 90069 ph 310•652•VELD {8353} fx 310•652•8363 toll free 866•600• 8353 {VELD}
contact@theveldgroup.com

Opportunity Summary
Headline	Profitable Mail Presort Business - San Bernardino
Summary	This presort mail facility located in greater San Bernardino County is available for potential acquisition. The company, which provides presort mail services, as well as a small amount of ancillary services such as inserting, labeling, folding, and tabbing prides itself on an extremely loyal customer base and a stimulating work environment that has resulted in low employee turnover. Current revenues are $2.6 ml, with discretionary revenues of approximately $808,000. With growing year over year revenues, customer contracts in place, and an annual reported profit of $700,000+, this business ideal for a suitor seeking a high margin return. The owner is willing to finance a portion of the sale over $2.0 million with highly favorable terms.
Facilities / Assets	This firm employs approximately 20 employees and operates out of a 10,000 square foot facility. All equipment is relatively new, purchased within the last 8 years, with current fair market value in excess of $650,000.
Competition	Competition in the presort mail industry is deemed to be medium to high. The closest competitor is in Anaheim and does not pose a significant threat due to the importance of operating in a regional market. The Company does have contracts with all of its major customers.
Growth Potential	This firm operates at 50% capacity with only 1 of the 2 sorting machines operating at a time. Management indicates new clients are selectively signed and that price breaks are not necessary to attract new business.
Other	Management attributes the company's tremendous success to integrity and top-quality services.