Business Overview

Due to family health issues, owner must sell this company for the market value of the equipment. Company offers pressure testing and other testing services for the examination of the integrity and strength of pipes, cylinders, valves, and other manufactured components that are subject to harsh or critical operating environments. Primary customers are in the oil and gas, aeronautical and industrial sectors. Services include proof testing, leak testing, burst testing, autofrettage, external load testing, transient pressure testing and strain testing. Pressures available from vacuum to 200,000psi and temperatures from -70°F to 2000°F. Testing mediums include liquids, nitrogen, helium and compressed air. Company works with each customer to design a testing program to meet the required codes and industry standards for the specific equipment being tested. A comprehensive report and a certification are provided to the customer on each project. The owner started this company as a related business to a much larger distribution company and there was little focus on marketing the pressure testing services. Customers were obtained primarily by word of mouth. There is tremendous opportunity for growth with increased effort in sales and marketing. Buyer will need to move business from seller-owned warehouse. Please refer to CBB Listing #8214

Financial

  • Asking Price: $136,000
  • Cash Flow: $83,201
  • Gross Revenue: $177,184
  • EBITDA: N/A
  • FF&E: $135,407
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

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

Business to be moved.

Is Support & Training Included:

Seller will train

Purpose For Selling:

Retirement

Opportunities and Growth:

Expand Internet marketing. Add a testing technician. Market services to Defense industry.

Additional Info

The venture was founded in 2002, making the business 20 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 completely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in earnings, or a variety of various other factors. This is why it is extremely essential that you not rely completely on a vendor's word, yet instead, utilize the seller's answer together with your overall due diligence. This will repaint a more sensible picture of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new consumers? Most times, companies have repeat customers, which create the core of their daily earnings. Certain variables such as new competitors sprouting up around the area, roadway building, and also employee turnover can affect repeat clients and negatively affect future incomes. One important point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business often, the better the opportunity to construct a returning consumer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house earnings impact future earnings potential?