For Sale: Private Label Apparel Manufacterer - Los Angeles

Description About This Posting: Private Label Apparel Manufacterer

This apparel manufacturing company is the West Coast leader in its product category. They private label for some of the world's most well respected brands as well provide smaller enterprises incubator like support services from concept to design, pattern making, execution and marketing. Their prowess centers around their manufacturing equipment and capacity as well as their development services, comprehensive cut and sew department, and the tiered pricing options they may offer from their U.S. based or their maquiladora production facility in Mexico. For higher volume or even more price sensitive needs, they have a joint-venture relationship in China. Their tiered pricing strategy and breadth of production abilities makes them a one-stop shop. A buyer will also have ability to in-source dying on-site shall they wish to.

The offering also includes the company's bourgeoning premium clothing label. This label grew by 100% in 2014, was up 40% in 2016 and another 20% in 2017 in what many consider to be the most appealing clothing segment. It is off to a record setting start in 2018 with over $200,000 in estimated Q1 seller's discretionary cash flow. The high-end line is tracking to do over $4.0 ml in 2018 revenues.

This sale includes the private label manufacturing company, its 12,000 square foot licensed factory operation in Mexico, its premium brand and over 63,000 square foot factory in Los Angeles. Alternately, one or more of the premise's 3 parcels may be purchased or leased back by the buyer. The manufacturing plant includes an extensive build-out as well as an estimated $1.5 ml of specialty manufacturing equipment.

The segment of apparel manufacturing is dominated by two major international firms however there are few U.S. based competitors. In fact, this plant is the largest U.S. owned private label facility of its type in the country, and likely accounts for 35% of private label production. From the premium brands perspective, competition exists with major international labels, but this brand is renowned world-wide for being the best in terms of quality and style in its product category.

There are several avenue of growth readily available on both the manufacturing side of the equation as well as the premium clothing label. First, the facility was build out to have extensive capacity and ideally more than 50% of total West Coast capacity and market share. It is currently operating at 35% - 45% of its total capacity. They cater to 15 - 25 clients and can certainly take additional ones on. To bolster margins, the firm has migrated into more of a consulting and advisory role for many of the influencer driven start-ups that do not possess industry know how. Though their production volume I slow and their runs are shorter they deliver more attractive margins.

One parcel of the property boasts valuable sewer rights that allow for onsite dying. It may allow the enterprise to further vertically integrate by dying product in-house, it ma be repurposed for other uses. With an approximate $2.0 ml value, it may also be sold. The Mexico-based operation has the capacity to triple production and is regularly approached by competing clients, but management has chosen to maintain focus on production for their clients.

A brand-oriented operator can take the high growth brand to the next level as its creation has been approached from a production driven perspective. It has capable management and a design team as well as nationwide sales representatives; yet significant domestic and foreign growth opportunity remain. They have a high growth wholesale business and private label accounts with some of the nation's most recognized brands. The company is now positioned to expand into the international market and to substantially increase their already formidable direct to consumer sales presence. The company is anticipating an astounding 300% - 400% growth in 2018 online sales.

Related Links And Information Regarding This Posting

Helpful Resources To Assist In Selling And Buying California Businesses

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Helen Yoo: Escrow & Bulk Sale Services - Southern California New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

Related Articles, Events, Blog Posts, Discussions, Videos, Interviews

Mentoring In How To Buy A Business - Tips From Expert Willard Michlin, CPA Willard Michlin, CPA a due diligence specialist shares his views on the mentoring process & about how buyers can "profit" from such a relationship when searching and buying a business. Mr. Michlin, CPA (800-864-0420) performs due-diligence services and and consulting services for business buyers.

What Factors Are Considered In Valuing A Small Business? Advisors Weigh In Valuing a small business is not guess work. It's not what some other businesses of the same type may have or may not have been sold for, it's not even what a business owner "feels" they want or deserve. It is a formula based on many factors. Peter Siegel, MBA from BizBen & others discuss this topic.

Podcast/Vlog: Business Purchase Financing Chat: SBA Loan, Non SBA Financing Ever wonder what is involved in obtaining business purchase financing to buy a business or franchise? Peter Siegel, MBA who has over 20 years advising and obtaining all types of financing for business buyers in this video/podcast - SBA loans, Non-SBA Financing, Alternative Financing Sources.

Absentee Run Small Businesses - Is That Really A Possibility For Buyers? Is buying a absentee run small business really a possibility? Peter Siegel (BizBen ProBuy Director) gets asked this question a lot in his consulting sessions with business buyers. Read more about what other Advisors and Intermediaries feel about this topic on this popular BizBen Discussion!

Attorney Specialist Shares Escrow Instruction Tips When Buying A Business Once you have successfully negotiated the Asset Purchase Agreement ("APA") for your acquisition it's natural to relax a little and let your guard down. Attorney Specialist Mark Chatow discusses what business buyers should look out for when opening escrow and getting escrow instruction in place.

FREE Sat Seminars: Best Practices When Buying Or Selling A Small Businesses This seminar focuses on the process of buying & selling a small business. Sat's - Monthly (refreshments will be served) in Southern California. Phone Willard Michlin (CPA, Certified Fraud Examiner, Due Diligence Expert, Business Broker). Phone 805-428-2063 to RSVP. Click On Link For Schedule.

Business Purchase Financing Expert Gives Tips On Proving Cash Flow What are the actual "provable" adjusted net earnings (cash flow) of a small to mid-sized business being purchased? Buyers need to look carefully at all financial info for the "real" adjusted net income or cash flow. Peter Siegel, MBA (business purchase financing expert) at 925-785-3118 explains.

How Do I Navigate Through The Negotiation Process When Buying A Business? Negotiating the terms of a business deal is a delicate process, where one wrong move can cost you the business that you wanted to purchase. Peter Siegel, MBA (BizBen ProBuy Program) discusses the ins and outs of negotiations, and how to work well with the seller to get a deal done.

See All News, Tips And Events