Current StateWe are a printing and marketing company that is
under an SBA loan. The Loan is choking the business profits as it's tied to CPI. We are looking to get out from under the SBA via an article 9 and offer in compromise to wipe out the remaining loan and need a company that will step in and buy the assets/company.
A new owner/investor will gain a $1.2m company for around $400k. As the owner I would then become an employee and could continue to run the organization debt free for the investor(s).
The company has battled through COVID, with some very creative product offerings and PPP, etc.. Now fighting through a recession and dealing with an ever expanding loan payment each month, but it's right-sized to be profitable once the debt service is removed. The company has had three owners and been successful in the Franchise Network of AlphaGraphics, but once the company liquidates the assets to a new buyer the Franchise agreement would be null and void,
saving another $10k per month in fees + the $21k paid to the SBA Loan holder (Wells Fargo). That's a savings and profit of $31k right from the start.There are 5 employees and then the owner and wife (part time). The new owner could choose to keep the current owner as an operating manager or have him leave and gain more savings. The current owner consults in marketing and could spin that out. After a year or two the investor could easily sell the company for a large profit. Expect it would sell in the $800k-$1m range.
The current owner is working with
Second Wind Consulting, which specializes in Negotiating with the SBA and other creditors to remove the debt. This is an opportunity with a low risk as no money is needed till the bank begins to work with Second Wind.