Listing ID: 73317
43yr old Structural Steel Detailing Business with 60% net margins avg’g $175K SDE annually. Business owner lives in OK and manages 4 engineers based in Mexico. State of art design software and “My PC” connection allow for daily office interface remotely from anywhere! Extensive training will be included for the right owner/operator! Great opportunity for immediate growth as steel and infrastructure construction market booming! Owners turns down 20% of business annually due to capacity constraints!!!
- Asking Price: $500,000
- Cash Flow: $175,000
- Gross Revenue: $320,000
- EBITDA: $250,000
- FF&E: $50,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1978
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Owner leases his bldg to this business AND would extend lease if required.
Most competition if overseas in India and Asia
Huge growth op to grow as very few reputable steel detailing ops in the US
The company was established in 1978, making the business 44 years old.
The company has 4 employees and is located in a building with estimated square footage of 2,500 sq ft.
The building is leased by the business for $1,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. However, the genuine factor vs the one they tell you might be 2 absolutely different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or a range of various other factors. This is why it is really essential that you not rely entirely on a seller's word, however rather, use the seller's solution along with your overall due diligence. This will repaint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can suggest that revenue margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new clients? Often times, operating businesses have repeat customers, which create the core of their daily earnings. Specific aspects such as brand-new competitors growing up around the location, roadway building and construction, and staff turn over can affect repeat consumers as well as adversely influence future revenues. One vital point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the better the chance to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the local median household income influence future earnings prospects?