| Hi-Profit,
Growing EMS Co with 300 clients |
| Listing ID: SB469 |
Location: California |
|
| Broker: |
Jim Carr, Ph:(408)
436-1900 |
|
Brief:
hi-Profit
EMS, great client list, industry supported
growth, multiple
facilities | |
| Listed Price: |
N/A |
| Total
Sales: |
$8,088,800.00 |
| Seller's Discretionary
Earnings: |
$3,168,400.00 |
| Fixtures Furniture,
& Equipment: |
(Included in Listing Price) |
| Real Estate: |
N/A |
| Inventory: |
(Included in Listing
Price) |
| Financing / Terms: |
Seller will negotiate financing |
| |
|
|
Business
Information |
| Year Established: |
1990 |
| Number of
Employees: |
130 Full Time / 0 Part
Time |
| Days and Hours of
Operation: |
1.5 to 2 Shifts |
| Relocatable: |
No |
| Franchise Information: |
N/A |
| Facilities /
Location: |
Two Locations, 17,886 sq. ft.
building |
| |
|
|
Lease
Information |
| Lease Expiration Date: |
|
| Option: |
|
| Monthly Rent: |
21,073 per month |
| |
|
| Additional
Information |
| Reason for Selling: |
Exit Strategy |
| Business
Description: |
This highly profitable company
has been very well managed through its multi-year
period of rapid growth. From the addition of a
second manufacturing facility, to financial
management, market positioning and staffing, the
sellers have built a company that is ready for
significant additional growth. Average annual
revenue growth for the last three years has
exceeded 42%. EBITDA growth from 2004 to 2005 was
over 140% and from 2005 to 2006 it was over 180%.
Growth continues: revenue for the trailing twelve
months ending 3/31/07 was $9.2 million and EBITDA
was $3.7 million; the first 6 months of the
current FY show revenue growth of 30% and EBITDA
growth of 60% compared to the year ago period. The
market for the company’s services has been, and
continues, growing dramatically thanks to well
entrenched, irreversible industry trends: RoHS
implementation and miniaturization. The company’s
services improve yields, reliability and useful
life of their clients’ components and assemblies.
The company is an industry leader. Despite being
one of the country’s largest providers of its
specific services, sellers estimate that the
company has less than 1% market share. The
company’s client base is as diverse as the
countless uses of electronic components. It has
invoiced over 300 different clients each of the
last three years. Many clients require mil-spec
work. For the FY ending 9/30/06, the largest five
customers produced equipment for government
communications, medical devices, industrial
controls and aerospace. The company also works
with components for numerous other industries,
including household goods, farm equipment,
microwave, environmental monitoring, marine
equipment, petrochemical, and electronics. It also
works closely with several customers on time
critical R&D and pre-production jobs. The
company has an excellent cost structure. COGS as a
percentage of revenue peaked in 2004 at 47.8% and
has steadily declined to 35.9% for the latest six
month interim period. Unlike most EMS operations,
like circuit board assembly or fabrication, this
company has a very low cost of materials: less
than 4.0% of revenue. It also has a very high rate
of return on assets. The company is well organized
and staffed, employing around 130 people. The
sellers continue to implement the necessary steps
to support ongoing growth, including new hires in
management and sales and introduction of a new
service line. The company has also begun the ISO
certification process. One seller currently works
full time and will stay with the buyer under an
employment agreement. The second seller works
approximately 8 hours per week and will retire
upon the sale. Sellers will approve the release of
all additional information. |
|
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