Futuristic Packaging Equipment Manufacturing Business

For sale by the original startup founder is a one-of-a-kind, futuristic packaging equipment manufacturing business has been successfully seeded, and has achieved product/market fit. Already profitable, this 3 year old start up has TONS of growth potential, and is operating in a rapidly growing industry. This company has no debt and is generating a steady cashflow of $10-15K per month. The company was founded in 2019 by a California business developer, who is currently the sole proprietor of the company. The company designs, manufactures, and sells over 30 different products. The general market in which this company operates is expected to grow y-o-y approximately 25% to 28% in the next 5 years. This data was obtained from Grand View Research, Inc, who also state on their website that this market size “… was valued at USD 9.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 26.7% from 2021 to 2028.” The company’s current customer base consists of roughly 10% general consumers, 60% equipment distributors, and 30% small to medium businesses. Gross Revenue • 2019 Revenue: $1,400 • 2020 Revenue: $173,600 • 2021 Revenue: $370,800 • Estimated 2022 Revenue: $486,900 • Estimated 2023 Revenue: $639,296 • Estimated 2024 Revenue: $839,459 • Estimated 2025 Revenue: $1,102,294 • Estimated 2026 Revenue: $1,447,422 EBITDA • 2019 EBITDA: -$2,300 • 2020 EBITDA: $49,200 • 2021 EBIDTA: $156,200 • Estimated 2022 EBIDTA: $239,200 • Estimated 2023 EBIDTA: $333,956 • Estimated 2024 EBIDTA: $461,280 • Estimated 2025 EBIDTA: $628,469 • Estimated 2026 EBIDTA: $848,005 The company's executive offices and operations center are located in California. Business Strengths: Product/market fit has been achieved. Profitability has been achieved, and it is growing. Low production costs and high retail price points give this company a large gross profit margin. The company efficiently makes the product using basic supplies that are readily available from multiple suppliers. The business model allows the company to quickly and easily scale to match the growing market’s demand. The company comes with a spacious commercial building, centrally located in a coastal California city, with plenty of room for future expansion. The company has many recurring customers. Competitive Overview: The competitive position of the company within the niche industry is extremely good. The products generally offer a higher value, at a lower price point than competitors. The company offers many more sizes and options than competitors, which allows the company to reach a broader market. The products are visible and selling on key distributor websites, gaining exposure and potential to be the industry standard. The company has roughly 5 competitors, 2 or 3 of which are comparable in market cap. Market capitalization is difficult to determine because there is no data available to make the calculations with. Growth Projections: The company’s growth year-over-year from 2020-2021 was 113.9%. The company’s estimated year-over-year growth from 2021-2022 is estimated to be closer to 31.31%. This is a conservative estimate based on the year-over-year growth of Q3 and Q4 from 2020-2021. The founder is looking to sell within 6 months. They are willing to stay on during a transition period of 6 months to a year. All potential buyers must sign a NDA before receiving any more details. Location: Humboldt County, California Year Established: 2019 Number of Employees: 1 Relocatable: Yes Real Estate: Leased Building Sq. Ft.: 2,736 Rent: $2,000.00 Per Month Lease Expiration: 6/30/2022 Facilities: Real estate and all furniture, fixtures, and equipment are included in the sale. Market Outlook/ Competition: The product is extremely niche, and thus, competition in the space is extremely low. Currently, competitors create an inferior quality product at a higher MSRP. As a current industry leader, this company could easily become the global leader in the niche with a little bit of product design work. Growth & Expansion: • Industry is expected to grow y-o-y approximately 25% to 28% in the next 5 years. • Implementing a distribution sales strategy may easily multiply revenue. • Licensing of product designs may be a viable strategy for generating revenue. • Modular product, with a growing repeat customer base. • Can be easily scaled to match demand and expand. • Potential for outsourcing. • Niche product; competition in the space is low. With some product design work, this company could easily become the global leader of this product.