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ENLIGN Business Brokers
2009 Caminos Street, Raleigh, NC 27607
(919) 341-1100

2003-2011 © ENLIGN
All rights reserved.

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Tactical Military Equipment Manufacturing & Sales
()

- North Carolina

Seller Financing: Yes
Lender Pre-Qualified: Yes
Listing ID: TACTICAL1
Status:

Listing Details

Listed Price: $1,250,000
Down Payment: $250,000
Total Sales: $1,406,575
SDE: $290,899
EBIT:
EBITDA:
FFE: $106,995 Included? Yes
Real Estate: Included? No
Inventory: $155,000 Included? Yes
A/R: Included? No
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Contact Information
Jeff Snell, ABI, CBI
ENLIGN Business Brokers
2009 Caminos Street
Raleigh 27607
Office: 919-341-1100
Cell: 919-624-1124
Fax:
Email: jsnell@enlign.com
www.enlign.com
Send Email To Agent
Reason for Sale: Interim retirement, desire to travel.
Training: Seller will provide transition support at no cost and extended support and/or research and development, design build, prototyping on a project or retained basis. Current manager is qualified for general manager role for absentee ownership potential.
Financing Terms: Seller will participate as required by SBA underwriting guidelines. Inventory value includes finished goods (~$125,000) and raw materials (~$30,000).

Operations

Year Established: 1999
Form of Ownership:
Home Based: No
Relocatable: Yes
Type of Location: Strip Center
Absentee Owner: No
Online:
Employees: Full Time: 21 / Part Time: 3
Managers: 1
Hours: Mon.-Fri. 8:00 am to 6:00 pm
Owner Hours:
Non-Owner Payroll:
Franchise Info: n/a

Location

Lease Expire:
Option:
Lease Terms:
Lease Security:
Monthly Rent:
Square Footage:
Facilities: The offices, manufacturing floor, showroom, warehouse and shipping/receiving are located in three contiguous bays in an industrial strip center. The space is adequate for current and expected requirements.

Summary

Business Description: The company designs, manufacturers, wholesales, retails and fulfills civilian and government (both domestic and foreign) orders for tactical gear used by the Military, Special Forces, Law Enforcement, Border Patrol, and Shooting Sports of both traditional and new-age (Airsoft) Enthusiasts.

The products are combat tested, the real deal, built for ultimate functionality, reliability, and durability. The products manufactured by this company save lives and help protect America's freedom.
Historical Summary: The founders started the business in their garage in 1999. The business has grown consistently year after year - even through the 'great recession'.

Growth has been managed as well as possible, but now it's time for an experienced operator with their own vision to step in and maximize the opportunity created by the founders.
Owner Qualifications: Owner should possess general business, accounting, and marketing skills. Familiarization with light manufacturing, sewing, product research, firearms, military and/or law enforecemtn, development and testing a plus.
Competition: There are a number of competitors competing in different segments of the market. In the commercial retail (non-military) space there are many manufacturers. These products are often lower quality 'price point' pieces. These products are typically not categorized as 'Made in America' (51% or more US parts and labor) or 'Berry Bill' (100% US parts and labor) as required for US military use.
Potential Growth: The company has experienced approximately a 100% top and bottom line growth over the past 12 months. This has corresponded with an approximate doubling of the number of employees.

Already impressive website could be enhanced with e-commerce for online direct retail.

The company stopped spending on traditional marketing at the beginning of 2011 in an attempt to manage growth. Word of mouth, co-marketing with manufacturers of complimentary products and continuing to develop and manufacture high quality products is driving strong sales growth.

If the new owner desired even more dramatic growth potential exists for adding additional products that fill more commodity (high volume) needs such as softside rifle cases, range bags, etc.

The company maintains and utilizes relationships with third party manufacturers to help fulfill very large orders. A new owner could drive more large orders to these third party manufacturers for products designed by the company (most likely for non military/LE use)leveraging the brand and reputation.
Risk factors: