Patented Automotive Cleaning Tools Marketer and Distributor 19755
Asking Price: $3,300,000
2016 Sales: $1,826,000
2016 EBITDA: $640,921
Business Description: This well-established Company markets and distributes proprietary patented air cleaning tools to the automotive reconditioning industry. These unique patented pneumatic tools are used for the cleaning and detailing of vehicles (especially vehicle textiles and hard surfaces). The company’s primary market is the automotive appearance industry. This is a large market that is serviced by automotive chemical suppliers who sell to automotive detailing companies, automotive dealerships, car washes, collision centers and other cleaning industries. Applications are being expanded to other industries, including remediation, restoration, janitorial and household or commercial cleaning.
- Highly scalable in current and new markets
- Patented products not owned by any other company
- Products are unique in the industry and have changed how the automotive reconditioning industry works
- Patented products are trusted and proven as the industry standard
- Well-known, trusted and recognized trademark name
- 100,000+ current installed base
- Product sells itself
- Tools are early in their patent life
- 300+ active Distributors, in the USA, Canada, and South America
- Numerous domain names related to trademark name are included
- Company’s on-line retail site serves areas not serviced by standard Distributor network
- Additional patents applications are in process at the US Patent Office
The products provide a very important solution in vehicle cleaning and preparation. Users rave about the tool’s effectiveness and productivity savings. The tools have become the “Must Have” tool for all Automotive Reconditioning professionals. The products provide an affordable tool for the automotive reconditioning professional while generating repeat sales of consumables and replacement parts/kits. Sales are approximately 80% new tools and ~20% consumables/replacement parts. The low price point opens opportunities to mass market to homeowners and DIYers. Products are currently contract manufactured. THE BUSINESS HAS EXCELLENT BOOKS AND RECORDS.
The founder had initially used a guerrilla marketing effort to build sales by attending trade shows and demonstrating the product. This has grown into a 100,000+ installed base with much repeat/referral business. During the past several years, the founder has developed an extensive distributor network, a company website and a professional video/literature collection of product demonstration, training and tips/tricks. The company now has sufficient critical mass to be added to existing product lines and sold by a national sales team. The product line can be easily added to an existing company without any additional staff. The products sell themselves and the founder is willing and able to train the Purchaser’s salesforce. A new, strategic owner can SIGNIFICANTLY increase sales & profits in many ways.
Growth & Expansion: The company has grown at a profitable pace with little marketing effort. The founder has used a grass roots, guerrilla marketing effort to build sales by attending trade shows and demonstrating the product. Virtually no direct or mass marketing has occurred. The company uses 300+ distributors in the Americas and supports them only though general contact. The company does not use sales staff, manufacturers-representatives or other contractors. A new, strategic owner can SIGNIFICANTLY increase sales & profits in many ways including: 1) Cross-sell other products leveraging the well-known, recognized trademark name and 300+ existing distributors, 2) Add product to a national or international distribution network, 3) Expand, promote e-commerce site (for non-distributor served markets), 4) Adding sales personnel could rapidly improve sales, 5) Market newly patented product into new cleaning industries such as remediation and containment, 6) Develop national media marketing, 7) Expand marketing into car enthusiast TV shows to use and promote the products (several active inquiries have been received), 8) Expand into major catalog companies in USA and Canada, 9) Evaluate manufacturing options (although current source is outstanding), 10) Continue building video training/technical library for end users and sales force, 11) Expand product line with cleaning solutions (including standard cleaning solutions, and also mold and mildew remediation, Nano technology and other niche applications), 12) Continue demonstrating at industry trade shows, 13) Continue to vigorously prosecute and defend patents & trademarks to maintain brand image, 14) Expand marketing into other industries including homeowners, DYI, janitorial, remediation and others.
Support & Training: Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to work for the new owner in a sales, training or product development at mutually agreed remuneration. The products sell themselves and the founder is willing and able to train the Purchaser’s sales force.
Reason for Selling: Retirement, Product Development of non-competing products
Purchase Price: The asking price for the assets of the business is $3,300,000. The seller will consider $300,000 seller financing to a purchaser qualified/approved by the Seller. THE SELLER PREFERS TO SELL FOR ALL-CASH. All financing is to be personally guaranteed. The assets include inventory at cost of $200,000, Accounts Receivables valued at $170,000, FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $5,000, patents and patents pending. The price will be adjusted for actual inventory and accounts receivables as of the sale date.
For information, reference Patented Automotive Cleaning Tools Marketer and Distributor Business for Sale 19755 and contact Jeff Adam, PE, MCBC, FRC, CBB at Adam Noble Group, LLC
Phone: (817) 467-2161
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