Industry Description

Direct Mail

SIC

7331

Days Open

Mon - Fri

Year Established

1982

Hours of Operation

Years Owned

1982

Full-time Employees

40 ­ 50

Part-time Employees

0

Other Notes

Hours/wk by Owner

Varies ­ 0 - 25

Owners Duties

Oversight

Skills / Licenses Req¹d

None

Training Offered / Cost

4 wks @ 30 hrs/wk

Non-Compete Terms

5 Yrs; 300 Miles

Exec. Summary

Lease / Bldg. Info.

Seller Owns

Monthly Rent

$7,200

Lease Commenced

TBD

Deposit

TBD

Lease Expires

TBD

Term & Option

TBD

Bldg./Area Description

Industrial

Square Footage

13,250

Seats, Pkg, Zoning, etc.

This business is located in an enterprise zone offering a $24k tax credit

Reason for Sale

Retirement

Financial Summary

Current Yr. Annual

2003 / Owner to Prove

2002 / Owner to Prove

Gross Revenue

As Œ03

$6,330,169 ($2.4 Stamps)

$5,118,838 ($3.9 Stamps)

COGS

Slightly Down

$5,140,993

$4,075,039

Rent / CAM

$55,005

$55,005

$55,005

Payroll

n/e

$819,000

$704,700

Net Profit (before tax)

Slightly Up

$484,000

$477,000

Discretionary Cash

Slightly Up

$535,800

$525,200

Expense Breakdown

Included in Sale

Assets

Liabilities

FF&E Included

$275,900

Lease Obligations

$0

Inventory Included

Not Estimated

Debt Included

$0

Other Assets Included

$0

Other Liabilities

$0

Working Capital (not incl)

$60,000

Return on Sale Price

Asking Price

$3,000,000

Owner Financing/Terms

Potentially

Earnest Money Dep.

$100,000

Down Payment

Opportunity Summary

Headline

High Growth Direct Mail Company

Summary

This high growth direct mail facility located in the greater Los Angeles area is available for potential acquisition.  The company, which provides direct mail, fulfillment services, and print and mailing list brokerage to private companies as well as educational institutions and political clientele, has grown at over 10% year over year, anticipates tremendous future growth.  Current revenues are $2.4 ml., ($6.4 ml. when including postage).  Discretionary revenues are approximately $535,000.  The firm¹s asking price was recently reduced from $3.5 ml to $3.0 ml. 

Facilities / Assets

This firm employs between 40 ­ 50 full time employees and operates out of a 13,250 square foot facility that has room for expansion.  New lease terms will be contingent upon the terms of the sale as the seller owns the property. 

Competition

Competition in the direct mail industry is deemed to be moderate.  Many print shops, however, seek to enter the industry.

Growth Potential

This firm operates without a dedicated sales force and without bidding on several contracts.  Management suggest that a sales staff would result in enough business to merit a 2^nd and potentially 3^rd shift, as equipment and space is currently running at less than 50% capacity. 

Other