Scott Lodge
Davie, FL (USA)
Role(s):
VP/SVP/Dept Head
Royce Integrated Solutions
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Startup
Location:
Davie
Industry:
Technology/Web
Year Founded:
1974
Number Employees:
10-50 people
Business Stage:
Mature
Entity Type:
Limited Liability Company
Description:
I am looking for $2 Mil in small business funding in order to purchase Royce Integrated Solutions, located in Fort Lauderdale, FL. with gross sales of $3M.
I am trying to purchase the 40 year old company I have been with for the past 10 years. I am the companies VP. The company specializes in service and sales of Security Access Equipment in the State of Florida including: door access controls, CCTV -cameras, vehicle gates, fence, and parking revenue equipment that you would find in many garages that collect revenue to park.
Our company has averaged past annual revenues of $5-7 million with 20% avg. net profit. Over the past 3 years the owner has had a terrible costly divorce (legal fees alone cost him almost $1 mil.) and made a poor decision to acquire a company that failed from the start. (Another $1 mil. loss before things were cleaned up) Due to economic issues our customer's like many have held back some in their spending and our avg. revenues are running approx. $3 mil.
With this being said, we have weathered all the storms and are built to be profitable (20%) our markets and business are looking up and many positive signs are showing that we can continue to be successful at $3 mil.
With the future looking bright and this years projected growth at 25% and a consistent 10 - 15% annual growth projected going forward, it should be a time of joy especially since the past 2.5 years have been so difficult.
The problem- the owner is emotionally wiped out, he has pulled over $2 mil in cash from our business to pay for the divorce and failed acquisition. We have $0 in cash flow and our purchasing power is reduced to credit cards and c.o.d.
To bring this to conclusion - I believe this is a perfect time to purchase the company, it has reached it's bottom and is beginning to rebound nicely, presently the company is lean and mean and as stated before is PRESENTLY DOING 20% net profit based on current revenues. The owner wants out NOW.
Note: I feel an issue is the past 3 years P&L's, obviously a disaster due to what I stated above.
The past 3 yrs history is in no way a demonstration of this company's current and future performance, it is stable, with a large customer base and great reputation on the street. The company is NOW MAKING 15 - 20% NET PROFIT (before tax) and has been successful for the past 35 years.
The asking price is $1.5 mil and I am sure it will go to $1.3 about 2.5 x profit - our industry's standard. I am requesting approx. $2. mil. loan, this includes carrying $ .5 - .75 mil in available cash flow.
Thank you for your consideration