Contract Embroidery Manufacturer (Niche Market, 90% GP Margin, SBA Pre-Qualified)

Price: $249,000

Location: Northern New Jersey

Industry: Embroidery, Custom Apparel, Contract Manufacturing

Listing ID: BAE-EMBROIDERY


Listing Description

Niche market custom contract embroidery manufacturer for sale. This business is one of the nation’s leading embellishers of custom decorated apparel. They work with some of the most respected distributor’s in the promotional products industry. This business has a ridiculously high gross profit margin that equates to over 90%. Very Minimal inventory required. Very easy to operate with low working capital requirements. Large runway for growth. This is a new business owner’s dream! Located in Nothern New Jersey, this business is strategically located very close to some major apparel warehouses. Which drastically cuts down on shipping costs. Being so close to major NYC distributors allows them to have quick turn-around times and lower pricing that gives them a competitive edge in the marketplace.

This contract embroidery manufacturer is a custom shop that takes pride in creating unique Embroidered, Patches, Tackle Twill, Rhinestones Transfers and Heat Transfers for all of its customer’s apparel and embellishment needs. Their custom embroidery, & decorating services are considered “state of the art” in value, quality, and service.Their no-inventory business model equates to unheard of gross profit (GP Margin 91%) and adjusted EBITDA margin (Discretionary CAsh Flow/EBITDA margin 33%). They have the highest margins for this type of business that I have EVER seen, bar none! If you can show me any other manufacturing business with margins as high as this ones, BAE will personally make a donation to any charity of your choice!!

The business owns and operates over 50 heads of embroidery manufacturing equipment (Tajima & Barudan). All of the equipment is in excellent working condition. Their current operating capacity is not fully utilized and their equipment can handle much more volume to accommodate growth before any large equipment expenses or CAPEX investments need to be made in the business. This is a 100% turn-key contract embroidery manufacturing business with plenty of room for growth!

Rental lease terms are $2,950 per month for 5,000 square feet. There is 2 years remaining on the current lease with two (5)year options to renew.

For a small business, it has immaculate and highly detailed books and records. Their financial reporting is better than some companies we’ve seen that are doing 20X more revenue. With their tangible equipment assets and excellent books/records, this business qualifies for an SBA loan and/or conventional bank financing. This business is another high quality, well-priced listing brought to market by Business Acquisition Experts- Business Brokers. BAE is affiliated with many SBA and conventional lenders in the NY Tri-State area. Our brokers are willing to help buyer’s in need of financing, facilitate and obtain a loan through one of our numerous referral partners.

https://www.sba.gov/

Listing Details

Total Sales: $382,950

Cash Flow: $128,638

FFE: $110,000 (Included in Price)

Inventory: $2,000 (Included in Price)

Lender Pre-Qualified?: Yes

Terms and Conditions?:

Negotiable

Reason For Sale:

Seller wants to relocate with her family to the Carolinas.

Training & Support:

30 days Full Training & Support Provided.

Operation

Year Established: 2005

Days & Hours of Operation: Monday- Friday 8:30am-4pm

Owner Hours Per Week: 30-40

Employees: 6

Managers: 2

Summary

Historical Summary:

Established in 2005, they started providing decorated goods to schools, fire departments, and businesses locally in Northern New Jersey. With each passing year, the growth continued and more machines were added. 4 years after starting the business, they moved from their humble beginnings into their first factory space in 2009.  IN 2010 they grew out again and moved into their first storefront /manufacturing facility.  In 2012 they acquired and took over their direct competitor.  This business has been providing embroidery services for both the local shops as well as large marketing firms for 13 years. And they have continued to grow every year since. In 2014 they moved into an even larger facility that the business currently operates at today.