Our client, who is of retirement age, is enjoying the benefits of a strong economy with cash flow for the 10 months of 2018 up 16% from the same period in 2017! As the 4th Q is their best, we expect that cash flow for the year will be in the $350,000 range! The sale price includes $225,000 in saleable inventory valued at cost as well as the land and building with an appraised value of $400,000!
With a 20% down payment, the purchaser is eligible for a 15-year SBA backed loan. Based on the CF projections for the 12 months of 2018 year, free cash will be + $250,000 after debt service ($350,000-$97,000 annual debt service). This is an excellent opportunity!
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