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Successful Sign Manufacturing Business For Sale

Ada County, Idaho
Asking Price:
$541,000 (USD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$516,765 (USD)
Cash Flow:
$160,603 (USD)

The right buyer can own this business for almost the same price it would cost to start the same franchise business from the ground up.

Well established, profitable business
Desirable, well managed franchise with strong cash flow
Financial ratios compare favorably to industry benchmarks
Strong reputation for quality and expedient service
Great customer base
This well-managed franchise sign manufacturing company shows strong upward revenue and profit trends over the last four years. Industry experts predict strong continued growth in 2019 and beyond. Company revenues demonstrate good growth over the last three years with 5.6% in 2016, 12.66% in 2017 and 10.7% in 2018. Founded in 2006, this business provides signage, banners and vehicle wrapping to its customers. Strong growth in business expansion and commercial construction spending has increased demand for the sign manufacturing industry over the last five years. The company serves a diverse set of more than 1,600 unique customers over the last three years. Top customers include large corporations, locally owned businesses and governmental agencies.

The Company has high customer loyalty and repeat business due to its good reputation for quality service. Relationships with suppliers are strong which helps the company maintain its cost of goods sold at an average of 29% of revenue. This compares very favorably to industry standards. Company management believes that sales could grow another 10% without additional staff needs.The company manufactures professional business signage including banners. These signs and banners primarily convey information such as company names, and advertising messages. The company also provides installation and repair of signage. Types of signage includes building, real estate, vehicle, digital, yard and site and point of purchase. Other services include: digital printing, graphic design, logo design, corporate identity, screen printing, and business cards. The company does not currently provide or maintain electrical signs.

Property information

Real Estate:

Lease

Premises Details:

Located in an easily accessible retail center close to downtown, the commercial building consists of 2,187 square feet. Current rent is $2,277.34 per month triple net ($13.11 per square foot). Tenant pays: lease rate plus taxes, insurance, utilities, CAM, operating expenses and maintenance expenses. This lease rate is included as an expense in the business financials. It is anticipated that the landlord would provide similar lease terms to a new business owner.

Business Operation

Expansion Potential:

The company falls in NAICS 339950 Sign Manufacturing.

The industry growth rating is “high” according to First Research report dated October 2018. Sign demand is tied to transit spending, nonresidential construction, and advertising. Customers need quality, customer service and competitive pricing. Because of the variety of different sign types and uses, the industry serves a diverse group of customers.

Primary customer groups include on-premise sign customers include retailers with a physical location, restaurants, banks, hotels and providers of consumer services, such as dry cleaners and hair salons. Off-premises sign and billboard customers are typically outdoor advertising companies. Safety and informational signs are used in factories, restaurants, retail businesses, offices, schools, government buildings and shopping centers. Customers for large EMC video displays are usually promoters of live sporting or entertainment events such as colleges, professional sporting arenas, convention centers, outdoor advertisers and casinos. Smaller EMCs are often sold to elementary or secondary schools, restaurants, state and local departments of transportation and transit authorities. Signs are sold through numerous channels including, retail, direct sales and through the Internet.

Competition / Market:

The Company has high customer loyalty and repeat business due to its good reputation for quality service. Relationships with suppliers are strong which helps the company maintain its cost of goods sold at 29% of revenue. This compares very favorably to industry standards which are 29.2% according to First Research. Company management believes that sales could grow another 10% without having to add staff.
The company is a franchise with proven systems and processes that provides the knowledge and resources to take over this company from day one and continue its proven success.
As signs are made of raw materials such as steel, plastic or wood, commodity prices can affect the gross margin in times of rising material costs. New commercial development and a growing economy drive the demand for signs. However, sign manufacturers have not shown the vulnerability during economic downturns like other industries according to research reports (IBISWorld and First Research).

Reasons for selling:

The owners are ready to retire. If you’re tired of working for someone else and want all the benefits of self-employment, this growing franchise business with well-trained and loyal staff, may be exactly the right opportunity for you. If you have management experience, and at least 10% of the purchase price in cash (or in your IRA or 401k)* for a down payment, this business could be yours. The seller is willing to provide some financing. Please note, a franchise transfer fee and approval of the buyer by the Franchisor is part of the required due diligence process. The business has been pre-approved for financing by a Preferred Small Business Administration lender.

*Note: There is no need to withdraw any funds from your IRA or 401k to purchase a business. There are special financing programs available that allow your use of retirement funds without taking a taxable distribution. Please contact the Business Intermediary listed in this document for a personal introduction to these resources.

Trading hours:

Monday-Friday 8am-5pm

Employees:
3 FT
Years established:
13

Other Information

Support & training:

Will train for 4 weeks @ $0 cost.
Buying an existing franchise is often the preferred solution to business ownership for those individuals who wish to exit a corporate job and take control their own career and life path. Owning a well-established franchise has benefited thousands of individuals over the years, providing satisfaction of business ownership within a proven system. This franchise operating system helps guarantee a new owner’s success through its onsite training and transition plan.

Buying an existing, operating, and profitable franchise business, like the company, eliminates the risk of starting a business from scratch without customers or cashflow. The company, has a solid customer base with historical earnings and positive growth trend and shows more than adequate cash flow to service the acquisition debt. Also, the company, as a well-established, profitable going-concern franchise business is less risky and potentially less-expensive than starting a new franchise from scratch.

A copy of the Franchise Disclosure Document (FDD) will be provided to a qualified buyer upon acceptance of bonafide offer for purchase of the company. The FDD outlines the requirements, details and copies of agreements for franchise owners. A transfer fee is required upon the signing of the Franchise Agreement. The Franchisor will train the new owner (i.e. “transferee”) in its operating systems.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

$54,100 Down / $54,100 for 120 mos @ 9% with Other Financing.

Furniture / Fixtures value:
$36,575 (USD) - included in the asking price
Inventory / Stock value:
$12,000 (USD) - included in the asking price
Relocatable:
This business can be relocated.

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