Meat Locker and Custom Butcher AK712

Dating back to 1946, this family-owned custom butchering and processing listing offers numerous meat services within the southeast Kansas region. This business maintains a s-corp. classification and the current owner has been servicing the local community since 1986. The current owner is well respected in the region and maintains a strong focus for community events through continued service to organizations like 4-H and FFA yet is looking to retire within the next six to eighteen months. Currently this business operates 5 and ½ days a week and services approximately 25 local processing clients per week. Looking to preserve these community ties, the current owner is a motivated seller that is interested in transitioning the next 12 to 18 months and is willing to support a new owner for a period to ensure a successful transition. Current staff offers multi-year experience, are considered to be well trained and will likely remain on after the sale.

This business is the only one of its kind in a 30+ mile radius that offers specialty meat, poultry and pork processing in the region. Current processing specialties include local livestock, wholesale poultry and wholesale specialty products. The current listing also retails specialty items such as salami, sausage, bacon and beef jerky. Leveraging strong regional ties dating back to the 1940’s, tight-knit relations have encouraged certain clientele groups, including local farmers, to support this business since the 1970’s. They have consequently incorporated younger family generations, via word-of mouth, into the existing client base of 1300 average annual clients. The current owner does not actively market the business, allowing for a new owner to potentially ramp-up production with improved marketing efforts allowing for a greater regional presence.

The current facilities and practices are fully regulatory compliant per KDA standards, are inspected daily and have continually maintained a passing standard. The business occupies an approximate 3,500 square foot processing area and a retail space consisting of two integrated properties with two one-bedroom apartments above the production area. Additionally, a side rental property next to the business could be included. The business real-estate and facilities MUST transfer with the business through an outright purchase. The 3 cooler-equipped facility areas include a kill floor, freezer-equipped red meat processing area, poultry processing area and a kitchen/packaging and catering area. Key equipment includes: slaughtering equipment – splitting saws, scale and hoist; processing equipment – 2 x 200lbs mixer grinders, 2 Biro band saws, a 100lbs water stuffer and a 100lbs hydraulic stuffer, a Hollymatic side-notch patty machine, a 200lbs meat mixer and a poultry cutter. Other equipment includes - 2 vacuum machines, a built-in 300lbs smoke house and an Enviro Pak 490 500lbs capacity smoker with pellet smoke generator and mirco processor, 2 labeling scales, a deli case and a Hoshizaki ice machine; as well as business vehicles – a 2007 Ford one-ton refrigerated van and a 1989 Ford 4 w-d pickup with older stock trailer. The sale would include all of the assets, equipment, supplies and client list.

This business has grown at a steady pace over the past five years, with gross revenue growing at a compound annual growth rate (CAGR) of over 2.6% since 2011. In 2015, the practice generated $830K+ in gross revenue and is on track for continued growth in 2016. This business has potential for additional bottom-line growth via expanded services, through additional marketing, additional service employees or man hours and greater equipment efficiencies. Since 2011, the business has generated positive cash flows, net income (EBIT) is estimated to be over 12% of revenue ($103K). Annual discretionary cash flow earning, i.e. adjusted EBITDA, is estimated to be ~18%+ of revenue at ~$150K, which is sufficient to service some debt financing and still receive a decent remuneration package. The estimated value range from this business is between $220K and $275K (excluding cash, receivables, liabilities and facilities). For illustration purposes, based on weighted averages of our analysis/method, as described in our valuation report, the estimate of value of the Company as of December 31, 2015 is around $250K.