Specialized Industrial Electronics Distributor
UNDER CONTRACT - NEO Business Advisors represents an industry leading industrial electronics distributor specializing in data loggers, data acquisition systems, temperature monitoring systems, and paperless recorders. The business has consistently strong sales and profitability with year over year margin improvement each of the last 3 years. End market industries are well diversified with four primary market sectors accounting for approximately 25% of revenue each and segmented as follows; a) laboratory, pharmaceutical, and research facilities; b) general manufacturing, oil & gas, and municipal water systems; c) aerospace and research and development national labs, and; d) automotive and vehicle.
Asking Price: $1,950,000
Ave. Revenue: $3,402,625
Ave. Cash Flow (SDE): $404,153
FF&E: Nominal Included? Yes
Inventory: $500,000 Included? Yes
Real Estate: Leased for $5,000/month
Size: 5,920 SF
Employees: 10 (9 FT, 1 PT, not including owners)
Established: 20+ Years
Location: Ohio
The business has an average order size of approximately $1,500 and approximately 35-40% repeat sales in an industry where most sales are one-time. The customer base is well diversified with only one customer accounting for more than 10% of revenue at 19% in 2023. The business has an excellent reputation for product knowledge, pre-sale and post- sale support, and fast delivery from a large stock of on-hand inventory. This is an excellent opportunity for an individual buyer looking to step into business ownership with a well-run, profitable business as a foundation for growth or for a strategic buyer looking to expand into a new territory.
COVID-19 Impact Statement: The business operated as an essential business throughout COVID-19. Sales and profitability remained strong and growing as the company serves diverse end markets. Some end markets slowed down while others picked up.
Financial Overview:
Revenue by Year:
2023 - $3,513,059
2022 - $3,342,682
2021 - $3,352,135
Average Revenue - $3,402,625
Cash Flow (SDE) by Year:
2023 - $381,482 (11.02%)
2022 - $433,489 (12.97%)
2021 - $397,489 (11.86%)
Average Cash Flow (SDE) - $404,153
Furniture, Fixtures, and Equipment (FF&E): FF&E is nominal and included in the asking price including a variety of office furniture, computer systems, software, network, servers, phone systems, and a variety of manufacturing, service, and repair equipment.
Inventory: Inventory of $500,000 is included in the asking price with the final sale price to be adjusted up or down for actual amount of inventory at time of closing. Inventory includes a wide variety of data loggers, data acquisition systems, temperature monitoring systems, and paperless recorders as well as some demo stock.
Real Estate: Real Estate is 5,920 SF of leased office and warehouse space at $5,000/month on a perpetual lease term. The real estate is part of a multi-unit office building owned by the seller in a separate legal entity. Preference is to execute a new long-term lease to a buyer on these terms, but they would also consider a sale of the real estate depending on the terms.
Growth and Expansion: The business offers excellent supplier relationships, long standing customer relationships, a tenured staff of experts, and a very well-established brand all serving as a solid foundation for growth. The seller has identified several opportunities for growth and expansion including but not limited to dedicated prospecting for high-value products, establishing new vendor relationships to add products/brands to augment existing, and build on OdaLog reputation for gas detection.
Reason for Selling: The owner is seeking a sale as part of exit planning for retirement and to reduce workload.
Support & Training: The owner is willing to stay on for a reasonable time after a sale to ensure a smooth transition of the business operations and customer relationships. Four weeks transition training is included in the asking price. The seller is negotiable for additional transition support if needed by a buyer at mutually agreeable compensation and terms.
Contact the Seller
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