Business Overview

his Houston, TX based company is a leader in providing a range of metal coating solutions. Physical Vapor Disposition (PVD) is the process of depositing and characterizing functional material layers on solid metal surfaces for protective purpose. These micron thin coatings applied on tools and machined parts increase productivity by reducing resistance to wear and chemical corrosion by lowering the coefficient of friction. Applications for these solutions are found in large and varied industries: oil and gas, firearms, medical devices and automotive. The company is an approved vendor for three of the top oil and gas contractors in Houston. The founder, who recently passed, operated and grew the company profitably since 1994. His surviving spouse has continued to profitably fulfill orders from the existing customer base. This is an excellent opportunity for an experienced business-to-business operations person to tap this technology and actively market solution to these large vertical markets. This listing price includes the real estate, located in a medium sized industrial park, situated with similar high quality small manufacturers in SW Houston. The size of property is 7500 square feet of which approximately 1000 sq. ft. is office, 1500 sq. ft. is loading/shipping and the balance for manufacturing. Please refer to CBB Listing #8258

Financial

  • Asking Price: $1,198,000
  • Cash Flow: $88,498
  • Gross Revenue: $359,672
  • EBITDA: N/A
  • FF&E: $71,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1994

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7500sf facility in office / warehouse facility on 1.063 acres of land

Is Support & Training Included:

Seller will train

Purpose For Selling:

Moving back to China

Opportunities and Growth:

The large potential markets: medical, oil and gas, automotive, firearms and medical all have need of protective coating for certain applications. The company has not had ANY proactive business development activities for years. Hiring sales people and promoting their services in trade venues would yield tremendous returns.

Additional Info

The company was established in 1994, making the business 28 years old.

The company has 5ft employees and is located in a building with estimated square footage of 7,500 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. However, the real reason and the one they say to you might be 2 totally different things. As an example, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is extremely important that you not rely absolutely on a vendor's word, however rather, make use of the seller's answer along with your general due diligence. This will paint a much more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too thin. Many businesses come under 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 take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Most times, operating businesses have repeat consumers, which create the core of their daily earnings. Certain variables such as new competition sprouting up around the area, road building, and also staff turnover can affect repeat clients as well as adversely impact future revenues. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the better the possibility to develop a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the regional typical home earnings impact future revenue prospects?