Listing ID: 73204
Price reduced on this highly successful, well run Tier 2 machine shop for sale. Owner and late father established business 40 years ago. Motivated owner ready to sell and retire. Very loyal customer base. Differentiation through precision machining for heavy duty heat exchanger cores in multiple industries.
- Asking Price: $530,000
- Cash Flow: $130,112
- Gross Revenue: $307,392
- EBITDA: N/A
- FF&E: $42,299
- Inventory: N/A
- Inventory Included: Yes
- Established: 1981
- 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
The venture was started in 1981, making the business 41 years old.
The business has 4 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nonetheless, the genuine reason 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 numerous sellers, these factors are valid. But also, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current decrease in profits, or a variety of various other reasons. This is why it is very crucial that you not count completely on a seller's word, yet instead, use the vendor's solution together with your general due diligence. This will repaint a more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in new clients? Often times, companies have repeat clients, which form the core of their day-to-day profits. Specific aspects such as brand-new competitors growing up around the area, roadway building, and staff turn over can affect repeat clients and also negatively affect future incomes. One vital thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the possibility to construct a returning client base. A final idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the regional median family earnings effect future income potential?