Seller Financed Packaging Machinery Mfr | $773K SDE | 50+ Years
Business Description
$400K net in, $480K cash flow out. Year one.
This Southern California packaging machinery manufacturer has built a 50+ year reputation as the dependable, value-engineered choice in its equipment category. The company designs and builds its machines in-house, Made in USA, serving customers across more than 10 end markets including pharmaceuticals, food and beverage, and other high-growth consumer categories. Demand is non-discretionary: the business has operated profitably through the dot-com bust, the 2008 financial crisis, COVID, and the supply chain disruptions that followed. SDE margins have held between 18% and 27% every year, gross margins run near 70%, the business carries no debt, and the seller is offering financing and lease terms rarely seen at this size.
Top Reasons to Acquire
— Seller Financed: $3M purchase price, 30% down, seller note at 7% over a 10-year amortization. Roughly $500K in working capital stays in the business, bringing the effective net equity check to approximately $400K.
— ~120% Cash-on-Cash: after servicing the seller note, year-one cash flow exceeds the buyer's entire net equity investment.
— $773K Average SDE: 3-year average across the most recent fiscal years, rent adjusted.
— $1/Sq Ft Leaseback: seller owns the facility and will lease it back at $10,000 per month, well below market for the area, locked in for the first two years.
— Debt-Free: no equipment loans, no line of credit, no leases to assume.
— Recession-Tested Demand: customers buy this equipment because regulation and retail requirements demand it, not because the economy is good.
— In-House Manufacturing: machines built domestically in batches, with standardized parts and mature, proven designs.
— Parts and Support Revenue: an installed base spanning decades drives ongoing parts orders and a low-cost, phone-based support model.
— Retirement Sale with Real Transition: owner is retiring and willing to train and support the buyer for up to 12 months.
Financial Performance (Fiscal Year Ending March 31)
FY2022: Revenue $3.12M, Adj. SDE $565K
FY2023: Revenue $3.72M, Adj. SDE $994K
FY2024: Revenue $3.13M, Adj. SDE $700K
FY2025: Revenue $2.70M, Adj. SDE $624K (per internal P&L; tax return pending)
3-Year Average SDE (FY2023-FY2025): $773K
A new owner walks into a debt-free operation with a tenured team, decades of installed equipment in the field, and a product line that does not require reinvention. The seller has intentionally run this as a lifestyle business, working reasonable hours and turning away growth to preserve capacity. Businesses with this combination of longevity, financing, and untouched upside do not come to market often.
Key Highlights
— Below-Market Facility Costs: The seller-owned building leases back at ~$1 per square foot, a fraction of prevailing industrial rates in the region. SDE figures already reflect this rent, so the cash flow shown is what a buyer actually keeps.
— Diversified End Markets: Over 10 industries served, spanning regulated products, consumer staples, and emerging categories. No single sector drives the business.
— Low Service Burden by Design: Support happens by phone and video rather than costly on-site visits, keeping service costs minimal and margins strong.
— Tenured, Stable Team: Approximately 10 to 13 full-time employees running a single shift, including two managers. Low turnover and a culture of taking care of people.
— Modernization and Marketing Upside: Lead generation runs almost entirely on trade shows today, with no digital marketing or outbound sales. Controls upgrades and basic modern marketing are clear, executable levers for growth.
Top Reasons to Acquire
— Seller Financed: $3M purchase price, 30% down, seller note at 7% over a 10-year amortization. Roughly $500K in working capital stays in the business, bringing the effective net equity check to approximately $400K.
— ~120% Cash-on-Cash: after servicing the seller note, year-one cash flow exceeds the buyer's entire net equity investment.
— $773K Average SDE: 3-year average across the most recent fiscal years, rent adjusted.
— $1/Sq Ft Leaseback: seller owns the facility and will lease it back at $10,000 per month, well below market for the area, locked in for the first two years.
— Debt-Free: no equipment loans, no line of credit, no leases to assume.
— Recession-Tested Demand: customers buy this equipment because regulation and retail requirements demand it, not because the economy is good.
— In-House Manufacturing: machines built domestically in batches, with standardized parts and mature, proven designs.
— Parts and Support Revenue: an installed base spanning decades drives ongoing parts orders and a low-cost, phone-based support model.
— Retirement Sale with Real Transition: owner is retiring and willing to train and support the buyer for up to 12 months.
Financial Performance (Fiscal Year Ending March 31)
FY2022: Revenue $3.12M, Adj. SDE $565K
FY2023: Revenue $3.72M, Adj. SDE $994K
FY2024: Revenue $3.13M, Adj. SDE $700K
FY2025: Revenue $2.70M, Adj. SDE $624K (per internal P&L; tax return pending)
3-Year Average SDE (FY2023-FY2025): $773K
A new owner walks into a debt-free operation with a tenured team, decades of installed equipment in the field, and a product line that does not require reinvention. The seller has intentionally run this as a lifestyle business, working reasonable hours and turning away growth to preserve capacity. Businesses with this combination of longevity, financing, and untouched upside do not come to market often.
Key Highlights
— Below-Market Facility Costs: The seller-owned building leases back at ~$1 per square foot, a fraction of prevailing industrial rates in the region. SDE figures already reflect this rent, so the cash flow shown is what a buyer actually keeps.
— Diversified End Markets: Over 10 industries served, spanning regulated products, consumer staples, and emerging categories. No single sector drives the business.
— Low Service Burden by Design: Support happens by phone and video rather than costly on-site visits, keeping service costs minimal and margins strong.
— Tenured, Stable Team: Approximately 10 to 13 full-time employees running a single shift, including two managers. Low turnover and a culture of taking care of people.
— Modernization and Marketing Upside: Lead generation runs almost entirely on trade shows today, with no digital marketing or outbound sales. Controls upgrades and basic modern marketing are clear, executable levers for growth.
About the Business
Real Estate
- Owned or Leased
- Leased
About the Sale
- Financing Options
- $900K down, 7%, 10 year amortization, 5 year balloon
Listing Info
- ID
- 2525203
- Listing Views
Listing ID: 2525203 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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