Business Overview

92yr Old EPA/DEQ Permitted Plating Op w/3yr $350K+ SDE on $2.5M
This extremely cashflow positive 92-year old company is a regional market leader in hard chrome and related chromium plating services. Business has 2 seasoned Plant Managers and 14 FT employees with very low operating costs per industry standards. 5-year net margins have averaged 15-20% on close to $3M sales. This ISO9001 and HUBZone certified company has had better than industry average growth over the last 10yrs utilizing the latest in automated technology. EPA and DEQ permitted facility. The company is in a very strong position to grow due to aging industrial and OEM machine parts which when chrome plated save companies up to 75% of new part replacement. There are strong opportunities to develop new profit centers like flame spray/metalizing coatings, a very complimentary coating used to salvage parts as well as increase wear and corrosion protection on new parts. These are larger and heavier parts that have larger profit margins! The 50,000 sq ft operations footprint on 2.5 acres of prime downtown real estate was appraised l0 months ago at $2.7 million. The business is only a mile from major interstates and highway arteries and the low cost of living, minimal competition and existing skilled labor force make the location very attractive. The owner will provide extensive training and support during the transition of up to 30 days. The business is priced at $3,800,000 including $325K cash, over $115K A/R, $2M in updated equipment, $100K inventory and 50K sq ft operations/offices on 2.5 acres($2.7M). SBA financing with 5% down and 25yr amortization(approx. $15K month debt svc) for right buyer. Please call or email Jay Shrewder today for more information 918-230-9813 on this one today!

Financial

  • Asking Price: $3,800,000
  • Cash Flow: N/A
  • Gross Revenue: $2,500,000
  • EBITDA: $350,000
  • FF&E: $2,000,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 1929

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:48,000
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3 state of the art production buildings with Corp offices on 2.5 acres of "prime" real estate

Is Support & Training Included:

owner will provide support/training for 30 days during transition

Purpose For Selling:

retirement

Pros and Cons:

Nearly 100yr old business has remained major industry player throughout environmental and mfg'g downturns. Mfg'g and Industry and major barriers to entry due to huge regulatory requirements and substantial start-up costs have Company well poised for next 10yrs plus!

Opportunities and Growth:

Several new "high margin" product lines can be established immediately with minimum CAPEX requirement

Additional Info

The venture was started in 1929, making the business 93 years old.
The transaction shall include inventory valued at $100,000, which is included in the requested price.

The business has 14 employees and is situated in a building with estimated square footage of 48,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of other reasons. This is why it is very vital that you not count completely on a vendor's word, but rather, use the seller's response along with your total due diligence. This will paint a much more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that profit margins are too thin. Numerous businesses 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 commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract new consumers? Most times, businesses have repeat clients, which develop the core of their everyday profits. Particular aspects such as new competitors sprouting up around the area, roadway building, and also staff turn over can affect repeat consumers and negatively affect future incomes. One essential thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the chance to build a returning customer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the local typical family income impact future income prospects?