Business Overview

This is a great opportunity for anyone in the metals industry who would like to be a business owner! This company operates metal forming equipment to manufacture metal parts. The business is very established and profitable. For over 15 years they have produced quality parts to customers in a variety of industries.


  • Asking Price: $775,000
  • Cash Flow: $254,388
  • Gross Revenue: $1,704,858
  • FF&E: $150,000
  • Inventory: $150,000
  • Inventory Included: Yes
  • Established: 2004

Detailed Information

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

The company operates out of a 7,500 sq ft leased industrial building. They have a lease through June, 2024 for $2,900 per month and a 5 year renewal option. There is a clause that allows them to terminate the lease with 180 days notice after June 30, 2022.

Purpose For Selling:

1 owner would like to retire-the other owner staying on board as an employee.

Pros and Cons:

Renewed demand from key markets is expected to drive industry growth. Annual industry growth is forecasted at 5.7% through 2025.

Opportunities and Growth:

With the current forecasted industry growth there is a great potential for increasing business. An individual with experience selling manufactured parts or metals will have an opportunity to lean on their previous relationships and realize growth.

Additional Info

The company was started in 2004, making the business 18 years old.
The transaction does include inventory valued at $150,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. However, the genuine factor and the one they tell you might be 2 absolutely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other factors. This is why it is extremely important that you not count absolutely on a vendor's word, yet instead, make use of the vendor's answer in conjunction with your total due diligence. This will paint a much more reasonable picture of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover points like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that revenue margins are too tight. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new clients? Most times, businesses have repeat consumers, which form the core of their everyday revenues. Specific elements such as brand-new competitors sprouting up around the area, road construction, and employee turn over can affect repeat clients and also negatively affect future profits. One essential point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Just how might the local mean home earnings influence future revenue potential?