Michigan Bioenergy & Firewood Distribution, 20-Year Logistics Operation

Full Editorial Writeup

This is a 20-year-old Michigan business that sources, sells, markets, and distributes bioenergy products and wood products, most notably firewood, to an established customer base. It is not a pure trucking company. The value sits in the combination of supplier relationships, a distribution and logistics network, and repeat customer relationships built over two decades of operating history.

The economics are unusual and worth scrutinizing closely. The listing reports $600,000 in gross revenue, a $250,000 average annual net profit, and simultaneously claims $599,999 in cash flow (SDE) and $600,000 in EBITDA. That means the seller is asserting that essentially all of revenue converts to owner earnings, which is not credible for a business that sources product, runs trucks, and pays for fuel and labor. The far more believable earnings figure is the $250,000 net profit cited in the narrative, which would put the real multiple closer to 5.8x rather than the advertised 2.42x.

The sale includes roughly $200,000 of equipment inside the asking price. The seller is exiting because he is an inventor pursuing patents and new products, not because the business is failing. Management floats a speculative $6 million valuation within six years contingent on aggressive marketing, which should be treated as marketing copy, not a plan.