Reference # – CGLA 00142
Owners Willing to Make Best Deal Possible Before Month End!
The company has reported income of more than $3.3 mm for the past several years. After 18 years the owners are selling in order to retire.We seek a buyer who will fit the certifications required by the State of Louisiana to be able to sell to companies and organizations under these laws; female and minority to hold at least 51% of the interest. The current majority owner is female and from outside the United States. She owns 51% of the business and fits the government’s criteria for minority and female. The remaining 49% interest may be held by any person, partnership or corporation.Bottom line, the casinos and many other organizations are required by law in the State of Louisiana to purchase a certain volume of goods and services from companies such as this one. It’s a niche business with few competitors and motivated customers.
Company revenue in 2015 grew more than 14%!
- Included in asking price
- Furniture, Fixtures, & Equipment (FF&E):
- Included in asking price
- Company leases approximately 3,000 square feet which includes office space, receiving dock, walk-in cooler, freezer and small warehouse space. Company owns two trucks and one refrigerated truck.
- This business was started (as were others) in the 1990s when gambling was legalized in the state of Louisiana. Under the law, Casinos are required to purchase a portion of their goods and services from minority-owned companies. Certain governmental agencies and publicly held corporations also receive valuable incentives by using minority and/or female owned businesses such as this one. Over the years only a few of these companies have survived due to inferior management or other business inexperience, issues or conditions. The company promoted here may be the strongest company in this segment left in North Louisiana and possibly the entire state. The company has no debt, pays its bills before they are due, and has created a highly reputable business with long-term customers.
- Growth & Expansion:
- The company does not have active sales people working the streets. It simply handles the current customers that call in and place orders. With at least one professional sales person working the streets, revenue could grow substantially. The company has never pursued casino business in other markets outside of North Louisiana and has the capability to sell/deliver to casinos in Central LA, Lafayette/Lake Charles area, Baton Rouge and New Orleans. Because the company “re-distributes” mainly food, beverage and janitorial items profitability (%) could increase by offering different products with higher margins. The company also holds a General Contracting License. Expansion possibilities are endless!
- Support & Training:
- This company is operated mainly by key employees with a high level of experience and tenure. The majority owner will train for up to 60 days on site and will be available for phone calls up to 6 months. This is a simple re-distribution business that requires primarily administrative work.
- Reason for Selling:
- Owners are retiring