Listing ID: 73065
Niche Manufacturer | Limited Competition | B2B manufacturing
This specialty manufacturing business focuses on selling their own proprietary products as well as OEM (Original Equipment Manufacturer) parts. The founders/current owners have done a great job of product and customer development. They have a wide variety of strong sales to OEM manufacturers, vendors and retail customers. Current owners are ready to retire.
Specialty parts manufacturing and fabrication companies seem to be highly resilient in all market conditions. For 30+ years, this business has enjoyed a steady stream of revenue and profits. They produce high quality products that demand the highest production standards and aesthetic appeal. Their customers include a broad list of manufacturers, resellers and private individuals that demand the highest quality products in the world.
Well-equipped 4+ acre facility included in the sale.
To learn more about this specialty manufacturer contact CBI Northwest Arkansas today!
- Asking Price: $1,990,000
- Cash Flow: $304,799
- Gross Revenue: $1,400,287
- EBITDA: N/A
- FF&E: $500,000
- Inventory: $75,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
multiple buildings included in purchase price
The deal will include inventory valued at $75,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. However, the real factor vs the one they say to you might be 2 entirely different things. For instance, they might state "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, recent reduction in incomes, or a variety of other reasons. This is why it is very vital that you not count entirely on a seller's word, however rather, utilize the seller's answer in conjunction with your total due diligence. This will paint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money so as to cover items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new clients? Many times, companies have repeat clients, which form the core of their everyday revenues. Particular factors such as brand-new competitors growing up around the area, roadway building and construction, as well as staff turnover can affect repeat consumers and negatively affect future incomes. One crucial point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the better the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the regional average household earnings effect future income prospects?