This is a unique offering of a business in need of a turn-around. So, it’s mostly a purchase of proprietary scientific and mechanical assets without income claims or proformas. Their products are the absolute best in the field, but the business has generated a tax loss carry-forward. So, it can be an asset sale or a stock sale to one or more persons or entities. The seller is willing to help by offering significant seller financing.

Science funding that fuels this business is currently taking a back seat everywhere, but will likely soon come roaring back with the next shift in the political winds. Even a world at war requires armies, navies and air forces that understand the climate. Natural disasters also continue with forest fires, hurricanes, tornadoes, volcanic eruptions, droughts and floods requiring replacement of science equipment in the field. So, while that future may not be quite here yet, it’s probably not far away.

Unfortunately, this business has also had a streak of bad luck with a major founder’s death and the remaining founder’s advanced age. Luckily, the founder still with us knows the proprietary science secrets that makes his instruments the best. Unfortunately, this aging engineer wasn’t the marketing arm of the firm. The lack of marketing and sales has caught up with them. The company is a C-Corporation with a tax loss carry-forward exceeding $1MM that someone might also be able to use.

Its market is worldwide (26 countries have been customers). In the U.S., 42 states have been customers. Within those states, over 40 Universities have been customers. Research scientists and meteorological specialists are the specific buyers. Nearly all buyers buy this companies equipment to study climate. Those instruments are located in laboratories or in the field, from the frozen polar regions to the deserts, from the ocean to the mountain tops, from the urban cities measuring pollution, to farmers measuring data from crops.

The owner’s seller financing offer of $925,000 against an asking price of $1,200,000 will require the personal guaranty of the qualified buyer, as well as 1st security position for the seller, not subordinated to any other loan.

For that reason, a buyer will need $275,000 for the proposed down payment, as well as a credible amount of working capital to re-start the company. The buyer will then be assuming a seller note of $925,000 at 5% annual interest, with a 10-year term, but with a 5-year balloon payment due so that the buyer may refinance the business at that time.