Business Overview

The company is a profitable and well-established precision spindle rebuilding business. The company has an outstanding reputation with its customers that include large industrial companies and machine shops of various sizes. The company is located on the west coast and within 1 hour of an international airport. This location allows 1-day shipping from the Seattle industrial area and 1 day expedited shipping from Northern California. The company performed well during the pandemic and is more profitable than in prior years. The company’s process for machine tool spindles includes inspection, disassemble, clean, measure, reassemble, inspect, Taper grind, test run-in, dynamically balance, document and ship back to the customer. The company is an OEM for several bearing Companies which gives them better buying power for bearings. All assets needed to operate the business are included in the sale.

Financial

  • Asking Price: $1,100,000
  • Cash Flow: $372,000
  • Gross Revenue: $757,000
  • EBITDA: N/A
  • FF&E: $365,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1993

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates from leased space. The lease can be assigned to the buyer with landlord approval.

Is Support & Training Included:

The seller will provide training and transition support to the buyer.

Purpose For Selling:

Pursuing other interests

Pros and Cons:

Most of the competition is in the eastern section of the United States.

Opportunities and Growth:

The company has various opportunities for growth.

Additional Info

The venture was established in 1993, making the business 29 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell operating businesses. Nevertheless, the real reason vs the one they say to you might be 2 absolutely different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a variety of various other reasons. This is why it is very crucial that you not count entirely on a seller's word, but instead, utilize the vendor's answer combined with your overall due diligence. This will paint a more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be fulfilled or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new clients? Many times, businesses have repeat clients, which develop the core of their everyday revenues. Certain elements such as new competition sprouting up around the location, roadway building, and personnel turnover can influence repeat customers and also negatively affect future revenues. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the greater the opportunity to develop a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local typical household earnings impact future income potential?