|Global Language Translation Business|
West CoastListing DetailsOffice ID: LANGUAGE3
Listing Broker: Michael Fekkes, CBI, CEPA
Listing Price: $1,695,000
Gross Revenue: $1,577,000
Cash Flow: $558,000
12 Month Forecast: $1,800,000
Forecasted Cash Flow: $600,000
FF&E Included: No
Real Estate Included: No
Sales Structure: Stock or Asset Sale
Seller Financing: No
Reason for Sale:Retirement
Training:The transaction goal would be a sale to a strategic/competitive company so extensive training is not anticipated. Owner(s) will be available for a reasonable transition period to get the buyer familiar with the business operations, customers, and staff.
OperationsYear Established: 2002
Form of Ownership: S Corp
Employees (full-time): 13
Business Description:Business provides written translations from English into all economically relevant languages and vice versa of documentation used in daily business life, i.e. contracts, technical articles, patents, marketing materials, etc. covering virtually all areas of specialization. Customers are generally medium to large corporations, as well as law firms engaged in international business activities. Current customers are mostly in the US, Europe and Asia. Virtually 100% of the revenue comes from written translations. Once in a while the business provides interpreting services, but this is negligible. Approximately 60% of revenue is contractually driven.
Historical Summary:Their mission was to provide high-quality translations at a reasonable price, with high rates of customer retention. This mission was brought into greater focus with the achievement of ISO 9001-2008 certification. One of the major accomplishments has been that the company’s development was completely self-financed and has always shown very acceptable profitability despite sometimes considerable headwinds. The business is very strong at production and execution.
Competition:While the language services industry is competitive, the business owners believe that the quality of translation work and current price structure is superior to that of the competition. This is evidenced by the high rate of customer satisfaction and retention.
Potential Growth:The business has one key client for which they only service a small fraction of the language needs. This pertains to just one single language combination. They do not have the infrastructure to handle other language combinations on the scale required by this customer. This contract provides an excellent platform for another LSP with the appropriate resources or ability to develop more resources to also compete for many of the other language combinations needed by this customer. That alone could open the doors to more millions of revenue. (The buyer would be acquiring a functional, profitable, operational unit that would require none of their own resources to continue operating). Additionally, the business has resources (both in translations and QC) that could handle 25-30% more work without increasing the project management costs at all. (It is estimated that the additional revenue the existing Project Managers [PM's] could handle without increased PM costs is somewhere between $600k-$1mm, depending on the types of projects - large v. small).
Facilities:Business was designed to be a “virtual” company with low overhead or extensive equipment needs, except for computers of course. The company can be viewed as either having no locations, since there are no “brick and mortar” offices, or can be considered as having multiple offices through all of its employee locations.
Last Updated: Apr 3, 2017 / 4:18 PM
Financial Information Current as of: Jun 5, 2016 / 3:09 PM