Gross Revenue: $1,870,000

Cash Flow: $484,000

Cash Flow Comments: 70% Recurring business

Seller Financing: SBA guarantee loans available for qualified individuals.

Fiscal year ending September 30th 2007: Sales $1,870,000 – EBITDA $369,000
Acquire a business providing leading companies with exhibition booths, related graphics and services including refurbishing, logistical management and storage.
This 25 year old company, with only 6 employees (including 2 related owners), designs, specifies and sells exhibition booths, related graphics and services for existing clients and a steady stream of new clients (400+ in 2007). The clients exhibit at one or more of the 13,000 major business to business and consumer shows held annually in the United States.
Although located in Washington, 49% of sales came from throughout the United States and Canada because of the Company’s strong internet presence and reputation. Out of state orders total $944,672 in 2007. California companies were responsible for 15% of out of state sales volume. Minnesota and Florida hit 6% each. MA, AZ, NY followed at 5% each.
Sales revenue increased 19% annually for the past 3 years because of two things: Rising internet sales (improved positioning); Responsive Customer Service commitment of all 6 employees, (recurring revenue exceed 70%. )
Facility, capex needs and working capital do not limit growth. Production outsourcing to proven, reliable American OEM vendors for booths and digitized graphic products minimizes space, equipment and labor needs. Only a small amount of inventory is required for rentals, refurbishing, spare parts and some accessories. Payment terms require deposits with orders and balances paid prior to shipping. Adherence to these payment terms result in little or no Accounts Receivable.
Level of Comfort is the only growth limitation
Owners planned retirement is the reason for sale. They are available for transition to assure business continuity and assist the new owner in learning the business. Computer literacy is important as the Company relies on computer technology. Developed skills with CAD and Internet software are especially helpful. Booth and Graphic Vendors provide training for their design software at little or no costs. Please appreciate the average order is approximately $2,000. This means a steady, quick pace in office activities.

Value Considerations:
Outstanding reputation with first tier clients
Long standing vendor relationships
Clients vary by industry and location
Recurring revenues
Strong internet position
History of rising sales
Excellent adj. EBITDA (20%)
Low Working Capital requirements

Year Established: 1983

Employees: 6 full time -

Relocatable: Yes

Facilities: The Company operates from a 6,500 square foot+/- facility located in a business park setting with ample storage and parking available. The building is leased through an unrelated party at a fair market lease rate. The lease has been renewed through February 29th, 2012. Base rent for 2008 is $4,685. The business may be relocated subject to an arrangement with the landlord.

Market Outlook and Competition: The business organic growth was 19% over the past three years and management believes that the trend will continue. The Company has no outside sales force and relies on recurring business and internet for sales. A new owner may significantly increase sales by either sponsoring positioning internet ads (pay per click) or employing performance base salespeople.

Management Training and Support: Owners may be available for training and to assure business continuity. This is a very active office environment.

Reason For Selling: Planned retirement