This opportunity is presently under LOI and therefore unable to be discussed. If you are interested, please submit your information below and you will be contacted should the opportunity again come to market. Thank you!
Established over 45 years ago, the Company is a market leader in its geographic area specializing in food production, packaging, and distribution via a fleet of over 30 food trucks. The Company serves primarily freshly-prepared breakfast and lunch items to large-scale manufacturing companies in Indiana.
Present ownership has worked diligently to grow sales every year since the Recession while simultaneously building a management team in order to spend more time away from the business traveling and enjoying life. Now in his 60s, the operator/owner would like to carefully transition the Company to a new owner that has the resources and energy to take it to the next level as he gradually begins to travel, play more golf and spend more time with family. While there is an existing management team in place, the owner believes that the Company needs a leader to give high-level direction.
- 7,500-8,500 packaged food products are manufactured and sold every day using the Company’s state-of-the-art commercial facility.
Financial Summary:
Trailing Twelve Months Sales May 31, 2016: $7,011,228
Trailing Twelve Months ODE May 31, 2016: $754,302
- Revenue has grown every year while maintaining consistent gross margins since 2009. The Company services a booming industry in a significant long-term growth trajectory!
Investment Highlights:
- Recent Pricing Increases Boost Profits – Two strategic pricing decisions were made that have boosted sales and earnings in 2016. In Q4 2015 all products were increased to the next highest $.25 increment. In January 2016 the beverage prices were increased by $.25. Both these increases boosted sales and gross profit with most of the increased revenue flowing through to the Company’s bottom line. Customer reaction was insignificant.
- Predictable Revenue Growth – The Company has experienced significant revenue growth with the exception of the recession. The owner believes that revenue growth could be more substantial, however he has strived for steady, managed growth.
- Physical Location – The Company’s location near a significant number of manufacturing hubs is an asset.
- Proprietary Database – The Company has developed a Microsoft Access-based software utilizing Google Maps for logistics, process and food management. It manages sales and is used to plan, build routes and predict purchases. From a food control standpoint this is crucial to planning and meeting the goal of continuously building sales. This database could be manipulated to give even more specific data without too much cost or effort.
- Limited Competition – The Company is well established, and there are significant barriers to entry in this type of business. It would be difficult to start a food production, packaging, and distribution business with 45 employees in a short period of time. Furthermore, the Company is the market leader in the area and could easily chip away at the business of some of the poorly managed competitors simply by marketing more aggressively.
- Two strategic pricing decisions were made that have boosted sales and earnings in 2016. Both these increases boosted sales and gross profit with most of the increased revenue flowing through to the Company’s bottom line. Customer reaction was insignificant.
Growth Opportunities:
- Expand Catering Business – A catering business expansion would be a natural new potential profit center as the Company already operates a state-of-the-art commercial kitchen production facility.
- Hire a Sales Person – A dedicated salesperson could assume the role of gathering pertinent information, including factories, the number of employees, and break times to continue expanding the Company’s reach and service population. Locating work that would encompass a process from design to production could be quite lucrative for the Company.
- Website / Online Marketing – Currently the Company’s marketing’s efforts are limited to local and print marketing. A website, expansion into social media, and Adwords campaigns could be used to great effect.
- Expanded Territory – The Company’s annual sales volume comes from within a limited geographic area. This could easily be expanded and ownership has identified specific areas where a new owner could offer service.
- Additional Ideas – The owner has several growth opportunities that can be implemented by the buyer to accelerate the Company’s already impressive growth rate. These ideas will be discussed at the site visit.
The BEST way to receive confidential information about this opportunity is to fill out the form below.
Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed we will be able to further the conversation and send you the confidential Offering Documents. Please contact Bill Evans at 616-307-6855 or wevans@caldergr.com with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and have a brief introductory phone call with a broker. Inquire today about this profitable and well-established service business for sale in Northern Indiana!
