Listing ID: 73395
Well-established and profitable machine shop in the Greater Cincinnati area since the 1980s. The company focuses on machining, fabrication, milling, and primarily on OEM. The owner has continued to make upgrades to the shop which include two new pieces in 2020.
Employees are all well-trained. There is a supervisor on staff that runs most of the day-to-day operations of the shop, office manager, and quality control manager.
The backlog is roughly $300,000.
The company has one patent.
- Asking Price: $2,700,000
- Cash Flow: $588,092
- Gross Revenue: $4,506,947
- EBITDA: N/A
- FF&E: $1,900,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:20,000
- Lot Size:N/A
- Total Number of Employees:24
- Furniture, Fixtures and Equipment:N/A
Owner will negotiate a training and transition period to ensure a smooth transition for customers and employees.
Owner would like to retire
The business was established in 1988, making the business 34 years old.
The company has 24 employees and is located in a building with estimated square footage of 20,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in profits, or a range of other reasons. This is why it is very important that you not rely entirely on a vendor's word, however instead, make use of the seller's answer together with your general due diligence. This will repaint an extra practical 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 need to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too tight. Many companies fall into 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 might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Most times, operating businesses have repeat customers, which form the core of their daily earnings. Specific elements such as brand-new competition sprouting up around the area, roadway construction, as well as personnel turn over can affect repeat clients as well as adversely influence future incomes. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the opportunity to develop a returning consumer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the local average home earnings impact future earnings potential?