Listing ID: 73045
This highly successful machine shop, strategically located in an Opportunity Zone in the Kansas City metro area, excels at providing the highest quality work on jobs from the largest machine repairs to the most intricate, complicated technical design and engineering jobs. The business is ITAR compliant and ISO 9001:2015 certified allowing them to do high level defense/nuclear work. Service capabilities range from onsite tool repair to precision machining, and include manufacturing, CNC machining, grinding, engineering and design.
With outstanding revenue and earnings, the majority of the shop’s business comes from manufacturing high precision parts in low quantities with short lead times, as well as larger repetitive jobs creating significant recurring revenue including onsite tool and machine repair, making them the trusted “go-to” machine shop in the Kansas City metro area.
The current owner’s role is to provide business oversight, contract management and customer relations, while the highly capable management team provides day to day shop management including quality control, quoting, ordering, scheduling, shop oversight, payroll and human relations. This is an outstanding opportunity for a buyer looking to invest in a highly capable business with impressive earnings.
- Asking Price: $1,600,000
- Cash Flow: $476,140
- Gross Revenue: $2,566,900
- EBITDA: N/A
- FF&E: $1,450,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:15,520
- Lot Size:N/A
- Total Number of Employees:17
- Furniture, Fixtures and Equipment:N/A
The business has 17 employees and resides in a building with approx. square footage of 15,520 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nonetheless, the true reason and the one they say to you may be 2 totally different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of various other factors. This is why it is extremely vital that you not depend entirely on a seller's word, but instead, use the seller's response along with your general due diligence. This will repaint a more realistic image of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering items such as inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that revenue margins are too thin. Many organisations 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 consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new clients? Many times, operating businesses have repeat customers, which form the core of their daily revenues. Specific factors such as brand-new competitors sprouting up around the location, roadway building and construction, as well as personnel turnover can impact repeat customers and adversely affect future profits. One important point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the opportunity to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? How might the neighborhood median house earnings effect future income prospects?