Listing ID: 73333
Specializing in miscellaneous steel fabrication, diaphrams, form work, various rails (hand, twin, DBR, etc.) fire rings, falsework, small imbed parts and more this well-established welding company has contracts throughout the state. According to the seller and because of the many requests for their quality work, a new owner, with more space, could easily double or triple their profits.
As stated by the Ohio Department of Transportation, in 2019 ODOT, “…invested in approximately $2.05 billion in over 1,000 highway construction projects.” As an ODOT certified vendor, this welding and steel fabrication company has a respectable share in many future projects. In addition to working with ODOT, there are several private companies they work with and have requests from others across the state. A steady stream of projects has the company booked through the summer.
- Asking Price: $450,000
- Cash Flow: $184,000
- Gross Revenue: $1,799,284
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
The business has 7 employees and is located in a building with disclosed square footage of N/A sq ft.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the genuine reason and the one they say to you might be 2 completely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or a range of other reasons. This is why it is very important that you not rely totally on a seller's word, however rather, utilize the seller's answer along with your general due diligence. This will repaint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that earnings margins are too tight. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new customers? Most times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and staff turnover can impact repeat customers as well as adversely influence future revenues. One crucial point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the neighborhood average house income effect future income potential?