List Price: $545,000
Owner Profit/Cash Flow
YOY Growth/Sales Trends: 4.3% increase in Gross Sales from 2014 to 2015
Average Profit Margin: 56.6%
Multiple: *Multiples range from 1-5, with the average being 3
Valuation: 2015 Cash Flow x Multiple = Price
$178,751 x 3.05 = $545,190.55
A company that implements corporatesales training programs with a 56.6% profit margin. This well-known company provides sales training primarily to larger,corporate clients, specializing in the senior living industry.
The business delivers a comprehensivetraining /coaching that involves the client’s executive, front line managementand sales teams. The program is delivered via face-to-face training workshops followedby online/webinar involvement and follow-up telephone coaching.
In addition, a new client whorequests their service will receive training manuals, access to learningcenters, and to a toolbox that includes ‘manager’ materials. Each client is ona contract with repeat clients on annual subscriptions. They focus on thelong-term growth of their clients, which creates recurring revenue as clientscontinue their services for a number of years. Theirrevenue comes from 65% projects and 35% online subscription services ranginganywhere from $5,000 to $70,000. In 2015 they brought in $332,874 in revenue, a4.3% increase from 2014.
Assets Included in Purchase: $77,812
Assets: $10,000 of office equipment (computers, printers, furniture, etc.)
• Established national brand and professionally designed website
• Majority of new clients come from referrals
• A library of cutting-edge training modules used for corporate clients
*amounts may vary
Year Established: 2005
Location and Service Area: Located in Omaha; National service area
Demographics: East and West coast; Middle states, primarily Colorado, Kansas, Missouri, and Minnesota with a focus on the senior living industry
Reason for Selling:Retirement
Employees: 2 Full-time employees; Coaches on a contractual basis (not employees)
Growth Opportunities: Marketing Program: social media especially; Full-time sales operation; Developing a sales certification process and selling it across industries; Become less niche: be a generalist instead of focusing on health care
Current Owner’s Responsibilities: Finding new clients; Online training; Frequent traveling to train clients in-person
Purchase Price: $545,000
10% Buyer Down Payment: $54,500
40% Seller Financing: $218,000
50% Bank Loan: $272,500
After all debt expenses have been paid, a buyer with a down payment of $54,000 can expect to retain an Owner’s Profit of $83,378 the first year, which is a 152% Return on Investment.
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.