Listing ID: 70310
This business is a CNC milling, CNC turning, and MIG & TIG welding shop. They are also capable of light sheet metal fabrication and grinding.
- Asking Price: $950,000
- Cash Flow: $168,973
- Gross Revenue: $353,125
- EBITDA: N/A
- FF&E: $353,615
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The shop area is 3600 square feet plus office and storage space. There building sits on 20 acres so room for expansion.
Will train for 2 weeks @ $0 cost. The owner and employees are trained CNC operators.
Owner is retiring.
There is plenty of room to grow.
The venture was started in 1998, making the business 24 years old.
The business has 3 FT employees and is situated in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. However, the real factor vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is extremely important that you not rely completely on a seller's word, yet instead, use the vendor's solution in conjunction with your overall due diligence. This will repaint a much more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies borrow money in order to cover points like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that profit margins are too tight. Lots of organisations 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 obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be met or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new consumers? Most times, companies have repeat customers, which create the core of their daily revenues. Certain elements such as new competition sprouting up around the area, roadway construction, and staff turn over can affect repeat consumers as well as negatively impact future earnings. One essential point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the higher the opportunity to develop a returning client base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Exactly how might the regional average family income impact future earnings potential?