IMG 5516$2.1MM 2019* Sales
$450M EBITDA

Pioneer in the hoop barn industry is selling the Midwest based business. The Company’s buildings provide a very high, bright interior that require no artificial electric lighting during daylight hours. Airflow in these buildings eliminates dead areas reducing moisture, bacteria and mold and supplemental warm and cool air in seasonal climates. 

In 2018, revenues were comprised of buildings/materials (93%), installation labor (5%), and wholesale feed and nutritional supplies (2% via sister-Company). 

*Most recent fiscal year ended March 31, 2019. 

Facilities:This Limited Liability Company operating from a leased (shareholder-owned)four-acre facility that includes a 10,000 square foot office. The facilities can accommodate more than double the current revenues without major facility improvements. The staff totals 6 full-time employees and operates with a general manager – the principal is an absentee owner.

Competition: Sales and Marketing - The Company relies on direct sales, its website, industry and trade events, word-ofmouth, and referrals to generate business. Since inception, the Company has established an extensive network of contacts within the agricultural and cold storage industries. Customers - Company is a worldwide supplier and manufacturer utilizing authorized dealers and builders throughout the US, Europe, Mexico, and Puerto Rico. Primary customer markets include agriculture-related (75% of 2018 revenues), cold storage (20%), and others (5%).

Growth & Expansion: Maintains a strong sales and margins despite a lack of resources dedicated to marketing. In order to expand the business, new ownership could utilize the techniques listed below:

  • Create an expanded sales team
  • Implement a marketing plan designed to diversify target markets
  • Continue to improve web page and design it to maximize key word searches

OPERATIONAL GROWTH CONSIDERATIONS

Outstanding growth opportunities: If properly capitalized, the Company has opportunities to expand its national and international reach and broaden client service offerings to further improve appeal with new and existing customers. • Superior name and reputation: Company has a long-standing reputation for providing quality products, reliable expertise, and superior customer support. • Strong customer relationships: Company has strong ties to clients due to its reputation for timely delivery and excellent customer service. • Diversified customer base: Company customer base is diverse as no one customer represents more than a few percentage points of revenue in a given year. • International reach: Company has supplied products and/or services to customers throughout the world, including Europe, Mexico, and Puerto Rico.

FINANCIAL GROWTH CONSIDERATIONS

Strong revenue growth: increased 60% from $1.4 million in 2017 to $2.2 million in 2018.

• Increasing gross profit trend: Company's cost of sales decreased from 42.7% of revenue in 2016 to 68.7% in 2017, resulting in increasing gross margins.

• Declining operating expenses as a percent of revenue: Company experienced a declining trend in general and administrative operating expenses as a percentage of overall revenue, reflecting management’s expertise and implementation of operating efficiencies. Adjusted operating expenses were 40.5% of revenue in 2016 and 32.6% in 2018.

Support & Training: As required.

Reason for Selling: Retiring

 

 

Gross Revenue:  $2,176,000
EBITDA: $786,000
INVENTORY: $407,000
REAL ESTATE: Owned
BUILDING SQFT:  12,000
EMPLOYEES:   6FTE


GenerationalEquity Logo wideThis Merger & Acquisition Opportunity is available via Marigold Resources' Senior Affiliate Partner status with Generational Equity.

Upon receipt of this completed and digitally executed NDA below, we will follow up by phone and/or e-mail to qualify providing the complete offering memorandum and schedule a time to discuss the opportunity further. 

Merger & Acquisition Opportunities