Business Overview

This steel company located on the central gulf coast has been fabricating, machining & performing industrial coating services for over 20 years all over the South. They now provide fabricated metal products NATIONWIDE. They are an approved vendor with the US Govt providing A/C cages to protect A/C units from thieves in federal buildings and government housing. They also provide services to the following industries: Marine, Aerospace, Oil & Gas, Wind & Energy, Automotive, Commercial / Retail. Much of their business model is building dry storage for marinas. Owner wants to become semi retired.

Financial

  • Asking Price: $800,000
  • Cash Flow: $650,000
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is headquartered on the Alabama Gulf Coast, but could be moved anywhere along the Gulf Coast. The owner works remotely or from a home office.

Is Support & Training Included:

Owner willing to stay on for 30 days to ensure a smooth transition. Owner also open to consulting for a longer period

Purpose For Selling:

ready to semi retire

Pros and Cons:

This company has no more than 3 competitors currently Nationwide. Huge Opportunity. Business is fairly recession proof and is fueled by tropical events and the booming gulf coasts along with increased government spending.

Opportunities and Growth:

Financial numbers based on 2020 owner's cash flow of $245,000. The P&L YTD for 2021 has EXPLODED and is over $650k.

Additional Info

The venture was founded in 2003, making the business 19 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. However, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of other factors. This is why it is very vital that you not rely completely on a seller's word, but instead, utilize the vendor's answer in conjunction with your overall due diligence. This will repaint a much more realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that profit margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in brand-new consumers? Many times, companies have repeat consumers, which create the core of their everyday earnings. Certain variables such as new competition sprouting up around the location, roadway construction, and personnel turnover can affect repeat customers as well as adversely impact future earnings. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the better the chance to build a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? How might the local average family earnings effect future earnings potential?