Specialty Powdered Drink & Baking Mixes

Specialty Powdered Drink & Baking Mixes

This listing is confidential. Sign an NDA and we will send the full confidential information memorandum for this business, with the financials included.

Revenue
$6,600,000
Cash flow
$100,000
Location
Western WA

Business Description

Company blends and packages specialty powdered drink & baking mixes that are wholesaled to leading national retailers. Western WA based.

$6.0M – $8.0M sales annually; in business 40+ years; including 20+ year relationships with large retailers

Business has been breakeven for a couple years and run as a lifestyle business; needs new owners with energy and a talent for marketing

Ideal buyers have a background in wholesale packaged foods, marketing, or operations

Seller is open to win-win deal structures, seller financing, and/or earnouts

Current cash flows will not support an SBA 7a loan, however, SBA 504 financing possible if a buyer wants to make equipment investments

For more info, complete an NDA

Proven model & experienced team – core leadership of 4 managers is tenured and solid, includes a GM, Production Mgr, Sales Mgr, and Shipping Mgr

Sales mix – products are sold via leading retailers across North America. Along with private labeling agreements, the company has licensing agreements with a wide mix of beloved brands. The licensing agreements, along with the nature of the product, ensure predictable demand.

Diversified customer acquisition – sales come from a mix of channels, including sales managers dedicated to mining current retailer relationships and cultivating new customers, a network of independent sales reps, trade show attendance, social media, inbound inquiries, and targeted retailer outreach.

Technology & Systems – owners made investment to migrate from legacy tools; new ERP system provides sophisticated insight into the business and can be accessed from anywhere. Process documentation and record keeping are modern, thorough, and accurate. New owner will benefit from system investments and documentation for years to come

Predictable, reasonable hours – owners work in the business a combined 40 hours / week. Like clockwork, peak period is the fall shipping season leading up to Christmas / holiday. Schedule is predictable / and low stress. The owners have a stable team that they rely on; this is an ideal opportunity for someone who wants to own & grow a business AND have a personal life

Reason for Sale – founded 40 years ago; current owners are ready to retire after running this as a lifestyle business

Detailed Information

Price
Accepting Offers
Revenue
$6,600,000
Cash Flow
$100,000
Year Established
1980
Employees
40

Real Estate

Leased / Owned
Owned
Building SF
38,000 sq ft
Amount
$49,172/month
Facilities
owners had facility designed and built 15+ years ago, includes ~38k sqft of production and warehouse space, ~9k sqft office and retail shop.

They are open to either 1) entering a long-term lease or 2) selling the commercial property with the business.

Additional Information

Support & Training: Transition Period and/or Training – owner amenable to providing the required training to a new owner to the extent that it is necessary based on their background; this can likely be achieved in 45 days. Beyond this initial transition period, should the buyer wish, owners are willing to be available as needed for advisory / consulting

Reason for Selling: They are ready to transition the business and see a new owner scale the business

 

On the market now

Businesses for sale.

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Buyer questions

Before you enquire.

Business brokers and M&A advisors generally represent the seller, not the buyer. Your lender and your attorney will be your primary advisors.

The buying process
Are we the right fit for you and your business?

We represent businesses with revenue of $2M - $30M and 10+ employees.

While most businesses are in the Pacific Northwest, we work with owners across the country.

We are not a fit for you if:

  • Your business is not profitable
  • Your business is pre-revenue
  • You have less than 5 employees or are a sole proprietorship
  • You are looking for a minority partner or to bring in a 50/50 partner. When ready, we help owners sell majority control of their business
  • Business is dependent on a single customer or contract
I am interviewing firms, brokers, or advisors. Why Washington Business Brokers?

First, you are and always will be a priority. We say this as we routinely see owners select a firm, attorney, or wealth advisor when we know they are low priority for the advisor. We had a seller use a well-known law firm downtown..the attorney was working on a $70M transaction at the same time as our $3.5M deal. The attorney took two weeks to reply to emails and frustrated everyone, including his client.

There are M&A and business broker firms in the Pacific Northwest with 5, 10, and even 20 headshots on their site. The vast majority of these folks are "industry advisors" or never complete a sale. If you are interviewing brokers - ask to speak with a seller they helped in the last year.

Four of the owners / sales we completed in the last 18 months each burned a year with other local firms first, got frustrated, and came to us. You are looking for the right advisor, with the right capabilities – not the largest firm.

Second, we encourage you to compare the quality of marketing materials we produce, and how we write about businesses online, vs other firms. Check out our activity on LinkedIn and any business for sale platform. The professional marketing pieces are going to be the first time a buyer learns that it is “your business” – we get positive buyer feedback continuously on the quality of content and materials, including from far larger investment banks. This investment in polished marketing directly benefits you in attracting more buyers and ultimately driving a higher transaction price.

Third, take a look at our industry awards for verified transactions. Check out the associations online: M&A Source and the IBBA (International Business Brokers Association). Washington Business Brokers, and Ryan Hemmert, is the ONLY firm in Washington and Oregon to be recognized four years in a row for verified deal activity.

You can verify the industry awards and reviews online.

We will gladly share references of happy sellers for you to speak with.

How will you keep my sale confidential?

Confidentiality is foundational to what we do. Our mornings start with a review of every buyer NDA that came in overnight on the businesses we currently represent. We are meticulous in reviewing these, in fact, we even have a negative online review from a prospective buyer who thought our screening process was too rigorous!

Take a careful look at the "Businesses for Sale" page - you will see no company or owner names listed. Instead, we say something along these lines..

Washington Business Brokers represents a $4.5M sales, $1.1M cash flow roofing business in metro Seattle.

30+ years in business, 4 crews with 3 - 5 roofers each, 2 estimators, and 2 office staff, seller preparing for retirement. For more information about the opportunity, go to wabusinessbrokers.com and submit an NDA. After your NDA has been reviewed and verified, we will release more confidential information about the opportunity.

We follow this process, to a T, with every busines and every buyer inquiry.

Rest assured, our processes are built around maintaining confidentiality and successfully selling your business.

How do you get paid?

We work on a straight success fee (commission) basis. We get paid only at closing when funds are wired from an escrow or legal firm.

As you would expect, the % success fee decreases as the transaction size increases. We follow a standard fee structure up to $5M in transaction size. If we value your business greater than $5M, we will custom quote a success fee.

In addition, every seller can put up to three "named buyers" directly in our engagement agreement. In the event "the buyer" is one of these three, you receive a 20% discount on the standard fee structure.

In our experience working with many different firms, you are not likely to see a great deal of variation in fee. You are looking for the sharpest advisor and the best fit.

We believe strongly in getting things done, fair deals, and building our reputation one fair deal at at time.

I own the commercial real estate my business operates from. Can you sell that too?

Yes! We have experience selling all manner of commercial real estate, including warehouses, lots for service trucks, medical & therapy suites, car washes, and more.

Some business owners prefer to lease their owned property as opposed to selling it with the business. We have plenty of experience advising and negotiating on commercial leases as well.

Unsure what makes more sense with your owned commercial real estate? Will we help you evaluate options and think strategically about your unique financial and tax profile.

How long will it take to sell my business?

The quickest sale we have had, from the date we e-signed an engagement agreement to the closing date, was four months.

The longest sale took a full 12 months. A reasonable expectation is six to eight months. Transaction length varies based on the financial profile of the business, industry, location, and macro environment.

When we partner with an owner on a sale, it is important that the owner stays focused on driving business results with their team and clients / customers, precisely because the sale process takes time. Our commitment to sellers is to drive the sale process as hard as we can while you focus on driving the business.

For a more granular view of "time to sell" check out the Market Reports page (see Resources).