Bridge Pointe, 214 Bridge Street, Building D, Metuchen, NJ 08840

 

BUSINESS PROFILE

Wholesaler/Distributor of Specialized Fasteners and Parts

 

Location:

Northern New Jersey.  The business is relocatable.

 

Years Established:

1959

 

Under Present Ownership:

Mid-1960’s

 

Gross Sales:

$5,100,000 (2008)

 

Cash Flow:

EBITDA:                                                      $1,626,000 (2008)

Seller’s Discretionary Cash Flow:         $1,776,000 (2008)

 

Inventory (Avg):

$14,300,000

 

Number Employees:

14 (including officers)

 

Rent:

Approximately $60,000 annually.  The facility is owned by a related entity and is available for lease or purchase on separately negotiated terms.

 

Asking Price:

$14,000,000.

 

Reason for Selling:

Management retirement.

 

 

The company is a fifty-year old distributor of specialized fasteners and parts.  The fasteners are typically manufactured out of special grades of treated steel, stainless steel, and titanium with a tight tolerance to the specification for that part.

 

The high inventory level relative to sales is the strategic value of this company.  The company considers it inventory level to be key in making it the “go to” distributor for its 600 customers.  This level of inventory allows the company to be “in stock” for small quality customer orders of little used items.  Management considers itself adequately compensated on the “inventory carrying costs” for this level of inventory based on its margins.

 

Beyond the competitive advantage with customers, management believes the inventory level is a barrier to new competitors entering its market.  Management fully understands it must substantiate to a buyer the value of the inventory.

 

Growth potential:

 
  • Expand customer base, particularly overseas (approximately 10% now).
  • Improved website to be more of a selling tool rather than just an informational site.
  • Through improve inventory control it is believe the company could maintain both sales and customer service with lower inventory levels.

 

The company presents to a buyer an excellent reputation for service to a strong base of repeat customers.  While inventory may appear, at first, to be high relative to sales, there is a strategic value to the level in terms of customer service.  Management is prepared to validate the inventory level to a serious buyer.

 

The company is well positioned for expansion by serving industry sectors poised for growth.