Business Overview

This more than100-year-old company is a trusted leader as a supplier and manufacturer of new Machines and Machine Tools. Specializing in providing industrial mills, lathes, grinders, etc and their proprietary replacement parts, the Company has an extensive and diverse customer base. The Company also supports multiple product lines.

Having acquired several other product lines, the Company now boasts these notable brands along with their trademarks, specifications, technical data and drawings under one banner. Primarily due to the proprietary nature of the machines and parts sold, competition is limited.

The Machines produced have very long service lives and many customers choose to rebuild rather than purchase newer equipment from other brands thereby purchasing replacement parts from the company.

Quickly responding to customer challenges and issues, the experienced employees are responsive and customer focused. Most orders are able to be shipped out the next day, gaining the Company a reputation for swift and reliable service.

With stable revenues and low fixed overhead, the Company produces substantial and consistent income and free cash flow.

Please note: This is a CONFIDENTIAL business sale. Information will only be provided to qualified and vetted buyers.

Financial

  • Asking Price: $6,000,000
  • Cash Flow: N/A
  • Gross Revenue: $4,000,000
  • EBITDA: $700,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:20,000
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

20,000 sq ft facility includes space for repair, assembly, and warehouse storage.

Purpose For Selling:

Retirement

Pros and Cons:

Proprietary Machines and replacement parts limits the competition which allows the Company to sell the unique parts at a premium price.

Additional Info

The company has 8 employees and resides in a building with estimated square footage of 20,000 sq ft.
The property is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the true factor and the one they say to you may be 2 totally different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or an array of other reasons. This is why it is extremely crucial that you not count totally on a seller's word, yet rather, make use of the seller's solution together with your total due diligence. This will paint a more practical image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover items such as supplies, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too small. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in brand-new clients? Most times, operating businesses have repeat consumers, which form the core of their day-to-day revenues. Specific aspects such as new competitors growing up around the area, road building and construction, and also staff turn over can affect repeat customers and also adversely affect future earnings. One essential point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the better the chance to build a returning customer base. A final idea is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood mean house earnings impact future revenue prospects?