Business Overview

This highly profitable, well-established Company specializes in producing
equipment used in the aerospace, medical, and Micro Chip Industries. The
business is in a high growth, high profit mode with significant new customer
sales. The business is scalable and positioned to continue to grow without
significant workforce issues. Company is successfully owned and managed by
an owner living outside the area of the business who invests 20 hours per
week.

Financial

  • Asking Price: $6,300,000
  • Cash Flow: $1,798,384
  • Gross Revenue: $2,638,249
  • EBITDA: $1,185,000
  • FF&E: $100,000
  • Inventory: $60,000
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:8,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Will work with buyer to develop a mutually agreed upon training and transition plan to ensure the success of the new owner.

Purpose For Selling:

Absentee owner to focus on opportunities closer to home.

Additional Info

The transaction doesn't include inventory valued at $60,000*, which ins't included in the asking price.

The company has 3 employees and is situated in a building with disclosed square footage of 8,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell operating businesses. Nonetheless, the true reason vs the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is very important that you not depend entirely on a seller's word, but instead, utilize the seller's solution combined with your total due diligence. This will paint a more realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that profit margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new customers? Most times, businesses have repeat consumers, which form the core of their daily revenues. Specific variables such as brand-new competition growing up around the area, roadway building, and also personnel turnover can impact repeat customers and adversely influence future revenues. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Just how might the local typical family earnings impact future income prospects?