BUSINESS OVERVIEW

Empire Business Associates, a Northeast Ohio merger and acquisition firm, represents a commercial window manufacturer and installer located in Northeast Ohio that is available for acquisition. The company is well-established, with an outstanding reputation for doing competitively priced, high quality work. The company provides aluminum and glass products for commercial construction projects. Its three major product/service categories, which include both fabrication and installation, are:

• Aluminum Storefronts & Entrance Doors (targeted to the Building Construction industry)
• Prefabricated Commercial Aluminum Windows (targeted to the Building Construction industry)
• Curtain Walls, which is a type of exterior wall – typically a thin, aluminum-framed wall containing in-fills of glass, metal panels, or thin stone – that is attached to the building structure and which does not carry the floor or roof loads of the building.

An approximate break down of sales by major product/service category includes Aluminum Storefronts & Entrance Doors – 33% of sales; Prefabricated Commercial Aluminum Windows – 33% of sales; and Curtain Walls – 33% of sales.

The company’s customer base includes both general contractors and end users, such as schools, which is a niche market segment that the company has targeted. The company operates as both a subcontractor and a prime contractor, and its customer base by industry includes schools (both new building & renovation); new construction; and renovation work.

The Glass and Glazing business has a long list of sub divisions of products including the following: Storefronts, Curtain Walls, Aluminum Entrance Doors, Hollow Metal Doors and Frames, FRP Doors, Door Hardware, Shower Doors, All Glass Entrances, Glass Skylights, Slope Glaze, Canopies, Single Point Supported Glass, Structural Glazing, Mirrors, Sealants, Miscellaneous Metals, Column Covers, Composite Wall Panels, Translucent Panels, Translucent Skylights and Plastic Glazing.

Virtually anything that is provided as a product and incorporates into the building has the potential of being added to the scope of work that we are capable of providing.

The following are the more common products:

• Aluminum Storefronts and Entrance Doors
• Prefabricated Commercial Aluminum Windows
• Glass
• Composite Panels

INVESTMENT CONSIDERATIONS

The company offers the buyer the opportunity to purchase a well-established business with an outstanding reputation within its industry. The many benefits of acquiring this company include:

• The company has a reputation for providing high quality, competitively priced products and services
• The company has built a strong customer relationship; which the owner believes has been key to the company’s success
• The company differentiates itself from its competitors by being flexible and by offering its customers a broad range of commercial glass and glazing products and services
• The company enjoys repeat business from its customer base
• The company competes effectively with larger competitors, is frequently able to earn a higher profit margin due to the company’s low overhead costs.
• The company’s strategic location allows it to serve four major markets in Northern Ohio
• Opportunities exist to grow the business in other areas of the glass industry
• The facility can be enlarge to allow for easy expansion of the business

FINANCIAL INFORMATION

FUTURE STRATEGIES FOR GROWTH

The company offers the buyer the opportunity to purchase a well-established business with an outstanding reputation within its industry. While the company has been successful, the owner feels that the business could be taken to a higher level with additional emphasis in the area of sales and marketing. This has been a role of his within the company; however, as often is the case, his responsibilities in running the day-to-day operations of the business have sometimes limited the time he has been able to devote to sales and marketing activities.

The owner believes that the addition of a full-time sales/marketing estimator would allow the company to increase its emphasis on a relationship-building marketing approach. This individual could also have increased contact with general contractors, to increase the company’s visibility to both general contractors and other potential customers.

A separate division could be created to go after National Account contracts. These projects are extremely competitive but can be a worthwhile endeavor because of the volume and repetitive nature.

Another idea would be to set up Corner Glass Shop division. Corner glass shops provide daily service for walk in business, residential market, commercial repair and replacement work and small commercial new construction work.

The most important strategy for growth is to ensure that the mainstay of the business is solid. Maintaining existing accounts and customers by nurturing the relationship that exists is no doubt the best approach for future success.

REASON FOR SALE & TRANSITION PLAN

The owner has other personal and business interests he wishes to pursue. The sale of the business will allow him more time for both. The owner is willing to remain after the sale

of the company, as deemed necessary, for a reasonable period of time during which an orderly transition between owners can take place. This includes the divulgence of any and all proprietary knowledge necessary to operate the business and preparation of the company’s customers, vendors, and employees to facilitate a smooth transition. He is committed to helping the new owner in every way possible to succeed, and is willing to remain available on a consultancy basis after the transition period. The owner is also willing to consider remaining with the company following the sale in a marketing/sales estimator role, or any other role that might be desired, should there be interest on the part of the new owner.

PRICE & TERMS

The price of the Company is $795,000.00 which includes the following assets of the business: machinery and equipment, inventory, goodwill, customer base and other going concern values attached to the company. Those assets not included in the sale of the business are the real estate, accounts payable, accounts receivable and cash. The owner would prefer a cash sale, though he is willing to defer some of the purchase price to a qualified buyer.

Purchase of the real estate is optional, though the owner owns the real estate and would prefer to sell it along with the business. He is also willing to provide a lease or a lease with an option to buy.

6857 Creekwood
Cleveland, OH 44143
p: 440-461-2202
f: 440-461-2405
E-mail