The company provides business services to its federal, state, municipal, and corporate client base. Primarily, the company provides vendor managed inventory (VMI) services to supports its clients’ fleet and facility repair operations. Additionally, the company provides staff augmentation services for administrative, human resource, and industrial support. Lastly, the company sells business and industrial supplies to its clients in its corporate metro area.

Key Aspects

Adjusted EBITDA grew at a compound annual growth rate (CAGR) of 17.0% from 2019 to 2022, with gross profit margins averaging 26.0% during that same period of time
Revenue has averaged $164 million from 2019 to 2022, with a 9.5% increase from 2021 to 2022
Single small-business set-aside contract that, on average, has generated less than 1% of revenue over the last four years
Largest contract with the Department of Transportation in the company’s current state of operation, which was awarded in 2002 with contract renewals extending into 2032
Majority of annual revenue is generated from long-term contracts with over a dozen different government clients, all of which represent stable and consistent work
Management notes that the company only has one major and a few minor competitors for its VMI services
Operations are focused on providing client services as opposed to product sales, allowing the company to have high re-win rates via referrals and client promotions
In operation for 40 years with an excellent reputation, acting as the primary vendor for several clients over the past decade

Opportunities

Capitalize on the two contracts the company is pursuing in 2023, which will provide staff augmentation services for industrial support with hundreds of staff members
Focus on expanding client operations and services offered via VMI and staff augmentation services to government entities and large corporate clients
Implement a strategic marketing campaign to reach new clients, and emphasize the benefits of the services within the company’s VMI and staff augmentation divisions
Enhance the company’s website with search engine optimization (SEO) and other online features to improve web-based purchasing for clients and increase the company’s presence within the digital space

Headquartered

Eastern US

Current Markets

The company currently serves federal, state, and municipal governments, as well as corporate clients throughout the US, providing a stable and economically resilient revenue stream.

Real Estate

The company operates from two operating facilities totaling 178,000 sq. ft. The primary operating facility is leased from an affiliated entity, while the secondary facility is leased from an unrelated third party. Management is open to entering into a long-term lease with new ownership for the primary operating facility in support of an existing contract.

Shareholder Objectives

The company is owned by a related party (90%), as well as three trusts (10%). Members of two of the trusts are key employees for the company, while the member for the third trust is inactive in the day-to-day operations of the business. All parties are in agreement with selling the business. The two active members are willing to remain with the company for a predetermined period of time to facilitate a smooth transition to new ownership.

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Government Contractor Providing Vendor Managed Inventory and Business Services – BN000045026

Government Contractor Providing Vendor Managed Inventory and Business Services – BN000045026

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