Business Overview

Established CNC shop located in the DFW metroplex. Owner started the business and it has been profitable and growing since he started it.

Owner desires to sell to someone with CNC ownership experience or manufacturing related experience.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: N/A
  • Gross Revenue: $850,000
  • EBITDA: $400,000
  • FF&E: $400,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2014

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Owner of business also owns the building . Building can be sold as well for $850K or leased for $4,000 - $4,500 per month

Is Support & Training Included:

Owner is willing to stay on for 2 months and consult as needed by phone for an additional negotiable period of time.

Purpose For Selling:

Other non competing business ventures

Pros and Cons:

Owner has been profitable year over year. Company experienced a COVID drop but has rebounded nicely and well on the way to pre COVID numbers

Opportunities and Growth:

Owner turns away business as he has several loyal clients. He takes care of his clients first and is reluctant to bring on new clients as he wants to keep his current clients happy.

Additional Info

The company was established in 2014, making the business 8 years old.

The company has 3 employees and is located in a building with approx. square footage of 4,000 sq ft.
The building is leased by the company for $4,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. However, the real factor and the one they say to you may be 2 totally different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in incomes, or a variety of other factors. This is why it is really important that you not depend completely on a vendor's word, but instead, use the seller's answer along with your overall due diligence. This will repaint a more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that profit margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new customers? Most times, companies have repeat customers, which create the core of their day-to-day revenues. Certain variables such as new competitors growing up around the area, road building, as well as employee turn over can influence repeat consumers and also adversely influence future incomes. One vital point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning consumer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional mean home earnings influence future earnings prospects?