Investment Project for Confectionery Factory - Sale of the Business

Opportunity Snapshot

  • Country: Ukraine Ukraine
  • Industry: Manufacturing
  • Stage: Exit/Sale of the business
  • Investment size: $1,600,000 / min. $1,600,000
  • Type of investment: Equity

Investment Opportunity

Investors are invited to an operating enterprise in the confectionery industry. The factory needs funds to repay bank loans and for the aggressive expansion of sales.

Proposed share of the company - 100%, cost-$ 1,600,000.

The main benefits of the proposal:
• a company with a high level of competitiveness and development potential
• an operating enterprise with 3-year history ( all production processes are debugged)
• the company is offered with a discount of 28% to the current value of assets (total assets - $ 2.23 million)
• the investment looks attractive on the market rate: EV / S - 0,8, EV / EBITDA - 5, P / E - 7,7
• immediate commencement of ROI - return on investment on EBITDA in the 1 st year of 19,8%
• the owner has a development plan for the company and with the consent of the parties, is ready to accompany the first 3-6 months after the sale in the format of consultations
• large domestic market and export potential of the enterprise - factors for substantially increasing of sales and higher profitability through economies of scale.

Strengths of the company

• The successful arrangement. The proximity to the western borders of Ukraine (good export opportunities), and in the center of the local market (effective logistics).
• The successful market niche. No threat from large-scale (impossible to fully automate the technology) and the smaller players (it is impossible to produce high-quality zephyr in bad working conditions).
• A strong position in the regional market. In western Ukraine is located only one major manufacturer of zephyr (which uses obsolete technology)
• Quality of products. The company produces zephyr on agar and does not use preservatives. The company's products meet the highest standards of quality.
• Exclusive variety. The company regularly introduces new positions to the range which have no analogues in the Ukrainian market and are the foundation of long-term growth in market share.
• Active sales. The company is building sales in the local market through its own trading team, and on proven distribution partners comes the formation of focused teams
• Aggressive plans to expand sales. The company plans to expand its sales geographycally
• Significant areas under development. (56% of real estate) to build the capacity.The building is completed for the perspective(and all buildings were renovated).
• Modern equipment. The company is provided with the necessary equipment for a stable and efficient production of a wide range of quality products. The company has a significant potential for sales increase at existing facilities (the current production load is 30%) and there are plans to open new lines of production.
• Own Parking Lot. Existence of our own medium-duty vehicles to optimize transportation costs to deliver goods to Ukraine and raw materials to the enterprise.
• The company has a good credit history and excellent reputation among business partners .

Detailed information on the operations and assets of the enterprise is granted after signing a confidentiality agreement.

Contact us on Merar if you are interested investor.

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