Financial Highlights:
Gross Revenue:
$151,533
EBITDA:
($188,013)
LOCATION:
North East
Market Size:
unknown
Competition:
Inflatable raft manufacturers
Competitive Advantage:
Indestructible, watertight, unsinkable, self-righting and fire retardant.
Doesn’t require the expensive annual inspection and repacking. In a distress situation the crew doesn't have to jump in the water to climb into the raft thus eliminating risk of drowning and hypothermia. In a distress situation the crew just needs to climb in, close the latch and wait for the ship to sink. The raft will float by itself. Once a potential client sees the advantages over an inflatable raft 95% of the time he is sold. If he doesn't buy it now he will buy it shortly.
Acquisition Highlights:
Profitable (40-50% EBITDA to revenue ratios)
Modernized Mfg Facility with large production capacity
Expansion Capacity possible with large piece of land available
24 hour operation possible with good employee potential in the area.
Barriers to Entry:
Patent is still in force. It is the right time to move quickly and establish the market worldwide while the patent is in force. This will discourage other companies from copying in the future. It is also very difficult for a new company to meet the Solas SLA regulations. We have all the approvals and ready to go full force.
Project Overview:
Company manufacture the world’s only NO Service / NO Repack fiberglass life raft which by acquisition can become very profitable and be expanded worldwide in a short period of time.
BizHarmony Perspective:
This facility should be merged with a USA West Coast facility with a synergistic product line to maximize all the available resources on both sea coasts and internationally. Plant on the west coast will manufacture for the West Coast clients and Asia and the east coast plant will manufacture for East Coast, Europe and Africa. This way shipping cost will be greatly reduced for the clients buying the products and will make it a lot easier for the clients to buy products since products are sold FOB factory.
Unique Characteristics:
They have a number of advantages over the conventional inflatable life rafts including the facts that they don’t require the expensive annual inspection and repacking. Operating cost of our product is less expensive after only 5-6 years amortization of the annual fees which is not required on this life raft. In a distress situation the crew doesn't have to jump in the water to climb into the raft thus eliminating drowning potential and hypothermia. Often an inflatable raft will be blown by the wind or inflate upside down. On high stormy waves a desperate crew doesn't need this extra stress.
Exit Strategy:
Current ownership will entertain any viable proposal from all cash to a deferred exit, remaining as part of the team to oversee the manufacturing.