Business Overview

Proudly serving the U.S. Defense Industry for per 50 years, this business has supported significant Ground Combat Vehicle programs for DoD since its founding. They are a Sole Source provider of major components for key Ground Combat Vehicles as well as a other major components with limited competition.

Their seasoned management staff and employees have long tenure with the organization and will be vital to a seamless transition of ownership.
This business was founded over 50 years ago specializing in the assembly of low volume equipment for the DoD. They have been providing critical support of products for critical ground combat vehicle programs since their doors opened.
Due to the specific nature of their components and required specialized equipment to produce their goods, competition is limited.
Their sole source components continue to be fielded today in the U.S. Military as well as foreign markets. This will further ensure their revenue from this source. Other potential opportunities are available with strategic partnerships with large defense contractors that have critical ground combat vehicles.

Financial

  • Asking Price: $6,000,000
  • Cash Flow: $2,948,249
  • Gross Revenue: $17,034,145
  • EBITDA: $2,948,249
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The building is leased by the business for $10,855.62 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you may be 2 totally different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other reasons. This is why it is extremely essential that you not depend completely on a vendor's word, yet rather, utilize the vendor's solution in conjunction with your general due diligence. This will paint a much more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new clients? Often times, operating businesses have repeat customers, which create the core of their daily earnings. Certain aspects such as new competitors growing up around the location, road building and construction, and personnel turnover can impact repeat consumers and adversely affect future incomes. One crucial thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the possibility to construct a returning client base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the local mean home income effect future earnings prospects?