Asking Price: SOLD
Adjusted EBITDA: $178,434
Business Description: This Nashville-area Company is a 30+ year-old well-established B2B chemical manufacturer of car wash and automotive detail chemicals, plus distributor of related supplies, via direct B2B sales to new and used automotive dealerships, detail shops, body shops, car washes and wholesale sales. Products include car wash and automotive detail supplies such as soap, cleaners, dressings, wax, compound, buffers, pads, brushes, towels, etc.
Sales are primarily through independent route salesmen selling direct from route trucks to businesses, in addition to direct sales with a small storefront at the manufacturing facility, selling retail to the public. Leads primarily come from customer referrals and supplier referrals. The Company sells to customers in middle and western Tennessee and western Kentucky.
SOLD !! We can sell YOUR Chemical Manufacturing Business, too!
The Company blends 8 products on site and fills/packages for sale and purchase the balance of their products (such as waxes). Generally, they do not want to produce any product that has waste byproduct requiring disposal. Their inhouse chemical manufacturing production is approximately ~30% of sales, totaling approximately 8-10,000 gallons/month. Largest volume products are all purpose cleaner and tire dressing. They have been in their current location since startup. They expanded in 2010 by adding a neighboring 4,000 SF warehouse, such that their current ~11,000 SF facility combines manufacturing, warehousing, and a small on-site storefront. The business has ~80 active customers serving 5 major sectors: ~66% Wholesale, ~13% Auto dealers (new & used), ~12% Car Washes, ~5% Other, ~2% Detail Shops, ~1% Body Shops.
The owner plans to retire but, if desired by a purchaser, is willing to stay in an ongoing role at mutually agreed compensation. The seller states that the business has excellent books & records and can prove all sales & expenses.
“EXCELLENT REPRESENTATION: When you decide to sell your business, you need a company that will represent you in the most beneficial manner possible. Jeff Adam of Adam Noble Group LLC went above and beyond our expectations. He handled the sale of our business with the utmost professionalism. He was there helping us through every step of the process, from valuation to the closing of the sale. From start to finish, there was discretion and confidentiality, along with prompt responses to our questions. I would recommend Adam Noble Group LLC to any business owner to handle the sale of their business.”
Daniel Pitts, Chief Manager, CBC Distributing, Chemical Manufacturing
The business has built a strong reputation over 30+ years for quality car care chemical products, reliability and dependability of route salesmen, and excellent customer service at both the B2B warehouse and retail storefront. Most of their current business comes from repeat and referral customers. The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as 1) expansion by adding new routes, 2) expansion by adding new geographic markets, 3) Using technology to replace handwritten invoices, 4) explore cost reduction by joining a purchasing coop, 5) adding new products to cross-sell to existing customer base, 6) direct marketing to target businesses to increase customer base, 7) begin soliciting and promoting social media reviews on social media networks, search engines, 8) increase online presence.
Competition: The B2B car care chemical blending and related automotive supplies distribution industry is very competitive. Barriers to competition include a) developing effective chemical formulations, b) difficulty gaining traction with customers such as car dealerships, c) well-established, loyal customer base, d) existing distributor relationships and e) time to develop specialized industry knowledge. Despite the presence of well-established competitors, the business has thrived. The owner feels that the 30+ year track record of the business is outstanding. Their strengths include product quality; reliability and dependability of route salesmen; excellent customer service at the warehouse. Employees and independent route salesmen are professional, well-trained, and knowledgeable.
Growth & Expansion: The business has built a strong reputation over 30+ years for quality products, reliability and dependability of route salesmen, and excellent customer service at both the B2B warehouse and retail storefront. The primary marketing strategy is direct sales to new and used automotive dealerships, detail shops, body shops, car washes and wholesale sales to independent route salesmen who supply customers/clients/businesses who need car wash and automotive detail supplies. Leads primarily come from customer referrals and supplier referrals. They distribute their products through direct sales (route trucks) by 5 route salesmen plus a small retail component to the public. Much of their current business comes from repeat and referral customers.
The business is recession-resistant, and a new, energetic owner can further increase sales & profits in many ways such as: 1) expansion by adding new routes and geographic markets, 2) implementing technology, 3) explore cost reduction via a purchasing coop, 5) adding new products to cross-sell to existing customer base, 6) increasing online presence.
Support & Training: Seller will train buyer for 4 weeks included with the purchase price. Seller is willing to provide additional training or remain in an ongoing role at mutually agreed compensation.
Reason for Selling: Retirement, but owner willing to stay in ongoing role if desired by buyer.
Purchase Price: The asking price for the assets of the business is SOLD. If required by a commercial lender, the seller will consider financing up to 10% of the price to a purchaser qualified/approved by the seller. All financing is to be personally guaranteed. Seller prefers to sell for ALL-CASH. The assets include Accounts Receivables valued at $48,800, inventory at cost of $150,000 and FFEV (Furniture, Fixtures, Equipment and Vehicles) valued at $68,000. The price will be adjusted for actual inventory, work in process (WIP) and accounts receivables as of the sale date.
NOTE: The sale of a business is confidential and discreet; PLEASE DO NOT VISIT THE BUSINESS OR SPEAK WITH ANY EMPLOYEES. We know about many businesses that are for sale but might not be advertised. Check out www.adamnoble.com for more information and consider registering your criteria as a purchaser.
For information, reference Car Care Chemical Manufacturer, Supplies Distributor Business for sale 20042 and contact Jeff Adam, PE, MCBC, FRC, CBB at Adam Noble Group, LLC
Phone: (817) 467-2161
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During 3 decades of M&A service, Jeff Adam has successfully completed the sale of over 700 businesses and advised or completed 1,000’s of business valuations and exit plans. An entrepreneur in his own right, Jeff has started and grown 12 companies in fields including international finance, B2B services, business valuation, construction, screen printing, Mergers & Acquisitions, engineering, and manufacturing. Jeff has donated his time as a distinguished speaker at numerous national & international conferences since 1977 covering topics such as environmental services, engineering, media, craft breweries, exit planning, business valuation, charitable giving, management, business brokerage and M&A fields.
Jeff is President of Adam Noble Group, LLC, a national M&A Advisory firm, professionally valuing and confidentially selling profitable businesses owned by exit-motivated business owners to qualified strategic, corporate, private equity, partners, management, and first-time buyers. Jeff establishes rapport, builds trust, and educates business owners in the steps to meet their goals as they prepare and achieve the discreet, confidential exit of their business. Jeff exclusively represents sellers of $1M-25M value enterprises and endeavors to transfer their businesses to qualified, capable acquirers who will build upon the seller’s vision, goals, culture, and history. Jeff maintains lifelong repeat and referral relationships with sellers, their acquirers, and service providers.
Adam Noble Group has multiple M&A and business broker specialties: Manufacturing, Defense Industry, Oilfield services, Construction trades, Craft Breweries, Partnership Buyouts, Manufacturing, Service, and Wholesale Distributors.
Our M&A advisors and business brokers are all multi-industry entrepreneurs who have successfully exited their own companies. Jeff has walked in your shoes! Jeff wants to put the BIGGEST CHECK of your life in your pocket! Please contact Jeff, and he will confidentially answer all your questions.