Listing ID: 69898
Full-service Machine and Fabrication shop doing pressure vessels, miscellaneous fabrication and custom machining. This company has the ability to manufacture everything from replacement parts and components to complete systems for a variety of industries including beverage, chemicals, food processing, grain, heavy-lift equipment, oil & gas, printing, etc. It has the capacity to tear down equipment, transport components back to the shop, rebuild and reinstall complete systems. With over 50 years experience and 30+ employees, the company has the expertise, technical knowledge, training and creativity needed to handle customers’ needs
- Asking Price: $2,500,000
- Cash Flow: N/A
- Gross Revenue: $2,300,000
- EBITDA: N/A
- FF&E: $2,000,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1975
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:46,000
- Lot Size:N/A
- Total Number of Employees:30
- Furniture, Fixtures and Equipment:N/A
4,200 sf metal frame, brick veneer front, office building; 10' acoustical ceilings; 14,400 sf Machine shop; 3 cranes; 17,000 sf fabrication shop, multiple cranes up to 10-ton; 10,500 sf fab shop, 2 cranes...
to be negotiated
One owner to retire. The other to continue if desired
Long-established, quality reputation; located near customer base
Reputation and experienced staff along with extensive equipment and excellent facilities positions the business to handle much higher volume of business
The business was founded in 1975, making the business 47 years old.
The transaction does include inventory valued at $100,000, which is included in the listing price.
The business has 30 employees and is situated in a building with estimated square footage of 46,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nonetheless, the genuine factor and the one they say to you might be 2 completely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competition, recent reduction in incomes, or an array of other reasons. This is why it is very vital that you not rely entirely on a seller's word, but rather, make use of the vendor's answer in conjunction with your overall due diligence. This will paint a much more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that earnings margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new consumers? Many times, businesses have repeat consumers, which develop the core of their everyday earnings. Certain aspects such as brand-new competition sprouting up around the area, road building and construction, and also employee turnover can impact repeat consumers as well as negatively influence future profits. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Just how might the local typical household income impact future income prospects?