A company focused on the development, production and sale of LED lighting

Pardubický region, Czechia

listing nr.: 220015

Photo is illustrative
Valuation 234 000 € (5 490 000 CZK)
Net debtNet debt is an indicator of a company's indebtedness. It is expressed as the amount of the interest-bearing loan minus the cash in the company.
0 €
Revenues Revenues express the total annual volume of the company's performance, which the company obtained through the sale of goods and services during the accounting period.
536 000 €
HistoryDuration of business operation.
14 years
EBITDA EBITDA is a financial indicator of the company's operational performance. Annual EBITDA is expressed as earnings before interest, taxes and depreciation in a given year.
73 000 €
EmployeesThe number of employees employed in the company on a permanent employment contract as of the date of publication of the offer.
7

Basic Information

The subject of the sale is a business, focused on wholesale, retail, development, production and installation of LED lighting. The company has all the necessary technology for electrical work, including CNC milling machine, soldering technology, etc. As a result, the company is able to carry out more complex customized lighting projects for private and corporate customers.

The company has a good position in the sector and a growing turnover in today’s challenging times due to its good name, its own quality and affordable products. The company has a well-established system of production process including certification in the state testing laboratory. The advantage is a lot of experience with custom production for demanding clients.

The company’s customers are mainly companies, but also private individuals from the EU. Currently the company handles about 300 – 500 orders per year, the ratio of trade/manufacturing is approximately one to one. The wholesale business is currently on a big rise, thanks to high quality and fast deliveries. This can be a very big plus for potential buyers.

A key advantage is the great potential in expanding by selling other own products that are currently already on the market and developing other products. Also the possibility of significant profit from foreign trade, especially from Asia where the company has its own manufacturer with a long-standing relationship. The company does business with Asia not only in its own product portfolio, but also, thanks to superior relationships, in related industries.

The company has been stably profitable for a long time. No debts, receivables or liabilities will be subject to sale. Included in the above sale price are inventories of 1.6 million CZK at cost price. Inventories are replenished continuously according to projects and movements of key items – these are always held in stock in larger volumes. In the event that the inventory is higher at the date of sale of the business, the sale price is adjusted by the difference from the value of 1.6 million CZK. The minimum stock value for the smooth operation of the company should be at least 1 million CZK.

In 2022, the company has been successful in winning larger projects and thanks to its long and strong relationships with suppliers, the company has managed well the crisis with material shortages and rising raw material prices. The company is well positioned for major expansion – currently two major projects have been agreed for the coming period.

The company is currently run under a sole proprietorship, so the sale would be as a sale of the so-called “obchodní závod” – there is no problem to transfer all activities to a new company established by the interested party, the existing company in this way, or transfer the business to another sole proprietorship.

The owner is currently involved in the strategic and operational management of the company, spending approximately 30 hours/week in the company. The owner has decided to sell the company due to a focus on other business activities. However, the owner is of course open to stay in the company for a limited time after the sale of the company, to ascertain a smooth takeover by the new owner and introduction to suppliers and customers. The company can also theoretically be moved anywhere in the country if needed. More detailed documentation and finished products can be provided for the serious interested party to review.

Overview of company financials

Tangible assets

  • equipment of production facilities incl. production facilities
  • equipment of two offices (for four employees), chairs, desks, PCs, cabinets for manual workshop equipment, tables, chairs, shelves, etc.
  • saw for processing AL profiles
  • CNC milling machine manual milling machine
  • racks, storage equipment, tables, chairs
  • power supply equipment, laboratory resources, 2pcs 3D printers
  • inventory in the purchase value of 1.6 million CZK

Intangible assets

  • contacts to suppliers and customers
  • e-shop
  • know-how
  • product certification

Rents

Office 2x, production and warehouse space

  • building area: 206 m² + sanitary facilities
  • rent amount: 17 ths. CZK/month
  • possibility to expand by another 100 m²

Employees

  • 1x orders, shop + production
  • 1x construction + production
  • 5x temporary workers

Debt

  • No debt will be sold

Total annual sales

  • 2018: CZK 4.5 million
  • 2019: CZK 5.7 million
  • 2020: CZK 7.4 million
  • 2021: CZK 8.1 million
  • 2022: CZK 12.6 million

Normalized operating EBITDA*

  • 2018: 404 thousand CZK
  • 2019: 77 thousand CZK
  • 2020: -53 thousand CZK
  • 2021: 1,760 thousand CZK
  • 2022: 1,380 thousand CZK

*EBITDA normalization was performed – reduced by optimizations and owner labor costs

Other information

  • Length of operation: 10+ years
  • Reason for sale: focus on other business
  • Legal form: company managed by self-employed persons
  • Subject of sale: sale of “obchodní závod”
I am interested

Ing. Tomáš Šuverík

managing director

+420 731 788 155
suverik@inbase.cz

If you are interested, contact us!

We will be happy to provide you with more detailed information after signing a non-disclosure agreement (NDA).