ImpressCo Says You
Signage, Promotional Products, Embroidery & Engraving
Normalized Cash Flow: $83,000
What they do – the short version . . .
• Source and maintain customers looking to increase their name recognition through promotional items.
• Maintain relationships with their suppliers.
• Maintain modern equipment.
• Produce excellent products.
ImpressCo has been producing signs, embroidery, promotional products, engraving – both rotary and laser -, sublimation, apparel, work wear and heat transfers for well over 10 years.
It is anticipated this will be an asset sale including registered trade name, and all the operating equipment.
The last three years of accountant’s financials and a complete equipment list is available to qualified buyers.
ImpressCo is located in ‘small town’ Alberta with all the amenities.
A wonderful place to raise kids. They work ‘office hours’ rather than ‘retail hours’. They are closed Saturdays and Sundays.
Well over half their business comes from local customers.
The business will have to move. The seller can assist the buyer find suitable local premises and the finding of suitable premises is an acceptable condition for the sale.
They are currently using about 1600 square feet.
The seller is preparing a policy and procedures manual to greatly smooth the transition for the new buyer.
ImpressCo has a wide choice of suppliers. Their top 5 suppliers only provide about half their needs.
Materials arrive by commercial transport, courier or Canada Post. Most supplies arrive within a week of placing an order.
Inventory (extra) runs from $50,000 to $75,000 depending on the season.
No special training is needed. Their one employee has been with the firm over five years and can do most (but not all) of the owner’s tasks. He could be thought of as a ‘key man’.
The seller estimates that the business runs at around 3000 man hours annually and this business could increase without the need for more staff.
There is little seasonality to this business and they are fairly balanced throughout the year. Fall is the busiest period while summer is typically slower.
All the equipment will be in good working order at the close of transaction. All is used regularly depending on the jobs on hand. Business can increase without the need for new equipment.
The day-to-day bookkeeping is done by the owner using Simply Accounting.
ImpressCo has an excellent WCB history.
Over the years, ImpressCo has had very little in the way of returns which has enhanced their reputation.
ImpressCo mostly deals with repeat customers and they enjoy a fair amount of referrals.
They also add ‘stickers’ with their name on all products. This too brings them new customers.
ImpressCo also has an active web site to show off their products and increase public awareness of services.
There is little customer concentration. Their largest customer accounts for less than 20% of their business.
Their top five customers are about half their business.
Most of their orders are picked up directly by their customers. Some orders are mailed or sent by courier.
Three years of financial statements and a complete equipment list is available for qualified buyers.
Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?
A. Design layout/graphic; customer service; production; bookkeeping
Q. How long will you stay after the sale to help in the transition?
A. This can be negotiated.
Q. Can you estimate what it would cost for a competitor to start up?
A To build a company of similar size and capacity – all the machines we have – about $110,000.00 plus the cost of staying open long enough to have enough customers to break even plus the costs of staying open long enough to attract as large a customer base as we have.
Q. Will you agree to a non-competition clause?
A. Yes – definitely
Q. Who should buy this business?
A. Anyone interested in being self-employed, someone that likes being creative and loves to work with customers
Q. Where do think the business has a competitive advantage?
A. We have no local competitors.
Interested? Next steps:
1. Fax / scan the non-disclosure document
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal