Los Angeles B2B Label Manufacturer

Business Description

For sale is a 33-year-old Los Angeles business that manufactures labels for various retail and Ecommerce products (i.e., food/beverage manufacturers, restaurants, vitamins, and cannabis packaging). It is a niche manufacturing business in a major market offering Flexo printing (comprising 70% of revenue) and digital printing (comprising 30% of revenue).

Clientele is 100% B2B, with 90% being repeat customers who have been with the company for five+ years. They have displayed consistent revenue growth (with a slight profit dip in 2021 due to the pandemic, where most employees went part-time due to COVID restrictions), so the payroll costs were lower in 2020. In addition, they added one new employee in 2021.

The seller owns his operating location in Central Los Angeles and has around $845,500 worth of equipment (included in the sale price). There are five W2 employees, and the owner wants to retire. Outside of team management skills and a rough understanding of printing which can be learned, no licenses or specific skills are required.

2019 2020 2021 2022
Revenue $742,164 $764,807 $810,183 $1,068,997
SDE $352,619 $377,653 $339,886 $448,070

 

Financial Overview

Asking Price: $1,500,000

Revenue: $1,068,997

Income: $448,070

Multiple: 3.3x

The listing is either pending or closed so the NDA cannot be signed