A tradeshow booth designer in NY we like? - Acquisitions Anonymus 265
Jan 23, 2024
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The hosts discuss a company for sale in NY that designs custom trade show exhibits. They analyze the potential challenges and opportunities, including real estate considerations and the impact of COVID-19. They emphasize understanding true cash flow and suggest buyers should have industry experience.
Understanding the true cash flow and potential transferability risks is crucial when evaluating the trade show exhibit business for sale.
Buyers of the trade show exhibit business should have relevant industry experience and manufacturing skills for successful operation.
Deep dives
Overview of the podcast episode
In this podcast episode, the hosts discuss a company that designs and fabricates exhibits for trade shows. They highlight that the business has some advantages over a similar one they examined in a previous episode. The hosts also briefly mention their podcast sponsor, Acquisition Lab, which offers educational and support services for aspiring business buyers. They then engage in casual conversation about unrelated topics, including personal experiences, New Year's celebrations, and bookkeeping services. Later, they provide details about the trade show exhibit company for sale, mentioning its asking price, cash flow, revenue, and other financial information. They emphasize the specialized nature of the business and the potential challenges it may face, such as dependence on the owner and geographic concentration of customers. Finally, they discuss the potential strategy of a sale leaseback arrangement involving the real estate associated with the business.
Diversified client base and resilience of trade show industry
The hosts note that the trade show industry, which relies on face-to-face interactions and networking, is likely to remain essential for businesses. They highlight the company's diversified client base, which includes large companies that require high-quality trade show exhibits. They discuss the potential profitability of services such as booth installation, dismantle, and transportation. However, they also express curiosity about the competition and advise potential buyers to assess how external factors like industry trends and location could impact the business.
Real estate's impact on cash flow and possible sale leaseback strategy
The hosts raise concerns about the real estate associated with the business, mentioning its high value ($7 million) and the potential impact on cash flow. They speculate whether the current owner might be undervaluing the real estate and indirectly inflating the business's worth. They propose a sale leaseback arrangement as a potential solution, suggesting the buyer could purchase both the business and real estate, then lease back the building to generate cash. However, they caution that the viability of this strategy depends on factors such as the rental rate and the buyer's ability to afford the lease payments given the business's cash flow.
In this episode of Acquisitions Anonymus, Michael, Heather and Mills discuss a company for sale in Westchester County, New York, which specializes in custom trade show exhibits. The hosts assess the business, potential challenges, and opportunities, including real estate considerations, geographical concentration, and owner-dependency issues. They consider the impact of COVID-19 on the trade show industry and the potential need for a sale-leaseback arrangement for the real estate component of the business. They also highlight the importance of understanding the true cash flow and potential transferability risks when evaluating this business. They suggest that potential buyers should have relevant industry experience and manufacturing skills to successfully run the business.
Check out the listing here: https://www.bizbuysell.com/Business-Opportunity/global-custom-trade-show-exhibit-designer-builder-and-fabricator/2161267/
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Created by Walker Diebel author of Buy Then Build: How to Outsmart the Startup Game, is an accelerator with a highly vetted cohort-based educational and support community for people serious about buying a business.
Acquisition Lab exists to help people buy a business and navigate all the complexities of the process, as well as provide a trusted framework, tools, and resources to support you from search to close.
If you are serious about buying a business, check out acquisitionlab.com or email the Lab's director Chelsea Wood, chelsea@buythenbuild.com.
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