Northeast Contract Textile Manufacturer Sold in 148 Days
Rachel Horner
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2 min read
About the Business
Industry: Manufacturing – Contract Textile Manufacturing
Location: Northeast
Size: $1.5M–$2M in annual revenue, $150K–$200K in cash flow, 14 full-time employees
Sale price: $100,000 at closing plus a royalty on revenue
Listing to accepted offer: 74 days
Accepted offer to close: 74 days
The Challenge: Retiring From a Full Production Floor
The owner was ready to retire and offered up to a year of transition to help a buyer take over. He was flexible on terms and willing to work out a deal with the right buyer.
74 Days to an Accepted Offer: Finding a Strategic Fit
What happened at every stage
Valuation: Baton valued the business on $150K–$200K in adjusted cash flow and built the listing and data room.
Buyer Outreach: Baton promoted the listing through a BizBuySell showcase ad, an Axial pipeline, a strategic-buyer list and direct outreach to competitors. 59 buyers viewed the listing, 23 opened the data room and 6 requested introductions.
Offer Selection and Negotiation Support: The owner of a nearby textile company with its own sewing workroom came in through the Baton platform and met the owner in person. The offer went through two structures before the owner accepted terms 74 days after launch.
Diligence and Closing Support: The buyer went straight to a purchase agreement instead of an LOI. The deal closed 11 days after the agreement was signed.
The Results
The buyer is a strategic buyer in the same trade that runs its own sewing operation nearby. Through Baton's process, the business:
Sold for $100,000 at closing plus a royalty on revenue
Closed with cash from the buyer's own capital and no bank loan
Closed 148 days after the listing went live
What's next for the owner?
The owner sold to retire, and the royalty is structured to pay him a share of revenue over about four years.
Advice and Lessons for Future Sellers
Look for buyers already in your trade. The winning buyer runs a sewing workroom of its own nearby.
Consider structure, not just price. A royalty on revenue gave the buyer a way to pay over time from the business's own sales.
Market widely. A showcase ad, Axial, a strategic-buyer list and competitor outreach put the business in front of 59 buyers.