Business Overview

This well-established business has fabricated weldments for OEM customers. Company also manufactures and markets proprietary capital equipment. Company has many repeat sales and great parts & service sales. Modern fabricating equipment, certified A.W.S. welders and a staff draftsman are just a few components that make this a highly sought-after opportunity!

Financial

  • Asking Price: $3,500,000
  • Cash Flow: $922,000
  • Gross Revenue: $3,185,000
  • EBITDA: N/A
  • FF&E: $412,200
  • Inventory: $750,000
  • Inventory Included: N/A
  • Established: 1967

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Owner will train

Purpose For Selling:

Retirement

Opportunities and Growth:

The business has opportunities for growth from existing client base and through a business development strategy by new owner- Better Marketing. The business has capacity to grow with additional labor force and space.

Additional Info

The venture was started in 1967, making the business 55 years old.
The deal doesn't include inventory valued at $750,000*, which ins't included in the asking price.

The business has 12 employees and is located in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. However, the real reason and the one they tell you might be 2 totally different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a variety of various other reasons. This is why it is very important that you not depend absolutely on a vendor's word, yet rather, use the seller's response along with your total due diligence. This will repaint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies finance loans in order to cover items like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that earnings margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract brand-new clients? Often times, operating businesses have repeat clients, which create the core of their daily earnings. Specific variables such as brand-new competition sprouting up around the location, road construction, and staff turnover can impact repeat customers and adversely influence future earnings. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the possibility to build a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? How might the regional average family income impact future earnings potential?