Business Overview

This midwestern business provides custom engineering, design, and manufacture of complex electronic subsystems and components used in aerospace, satellite communication, and defense applications.

The Company pursues design projects that are likely to yield long-term manufacturing opportunities. Some designs have been in production almost 20 years and several of its current projects may run for the next 10 to 15 years.

Founded over 25 years ago, the Company has earned a great reputation hence there are many repeat customers and most new business arrives via referral. Existing connections with several important defense contractors will afford the acquirer the opportunity to continue building these relationships and engage in large projects.

A solid team of 23 is in place as well as a design and manufacturing facility with room for expansion as the business continues to grow. Ownership wants to remain with the company after an acquisition which will ensure a smooth transition and seamless transition of client relationships.

Revenue has grown steadily, is gaining momentum, the pipeline is full and 2022 looks even better!

This is an amazing opportunity for a strategic buyer to move into new markets, add customers, broaden, or deepen technical capabilities, add highly skilled engineering and production staff, and/or expand geographically.

Financial

  • Asking Price: N/A
  • Cash Flow: $510,000
  • Gross Revenue: $2,900,000
  • EBITDA: N/A
  • FF&E: $1,000,000
  • Inventory: $1,000,000
  • Inventory Included: Yes
  • Established: N/A

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:23
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The transaction does include inventory valued at $1,000,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, current reduction in profits, or a variety of other factors. This is why it is really important that you not rely completely on a seller's word, yet rather, utilize the vendor's answer combined with your overall due diligence. This will repaint a much more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be met or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new consumers? Often times, operating businesses have repeat customers, which form the core of their daily earnings. Specific factors such as new competition sprouting up around the area, roadway building and construction, as well as staff turn over can affect repeat customers as well as adversely influence future earnings. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional typical house earnings influence future earnings potential?