Business Overview

This company is operated by the retirement aged owner whose owner’s cash flow exceeded $400,000 in 2020. 2021 is shaping up to be a solid year as well. The company uses CNC machines, EDM machines, and CAD / CAM machines to produce the most demanding of custom – made tooling. Considerable growth can be realized using the existing facility and equipment. This business is offered as an asset purchase, free and clear of debt. The owner will train in all aspects of the business and will be available to ensure a smooth transition. Highlights include:

SBA loan eligible
No debt in the company
Price includes all inventory
All work archived on CDs / DVDs
Owner willing to stay on in some role
9,200 square foot facility available to purchase
Clean books & records – all numbers are verifiable
Long time staff in place – over 75 years with company
Covid has had no impact – considered essential business
Price includes vehicles with market value exceeding $35,000
No dedicated salesperson – simply word of mouth advertising
Price includes all equipment with market value exceeding $300,000

Financial

  • Asking Price: $890,000
  • Cash Flow: $402,000
  • Gross Revenue: $1,077,000
  • EBITDA: $402,000
  • FF&E: $350,000
  • Inventory: $2,500
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:9,200
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is a 9,200 square foot facility that was built in the 1990’s. It has been well maintained and was constructed for this company with much more growth in mind.

Is Support & Training Included:

The owner will train in all aspects of the business and will be available to ensure a smooth transition. The seller would be willing to stay on in some capacity and work for the buyer.

Purpose For Selling:

The seller is of retirement age.

Pros and Cons:

This company is smaller in size to most of the competition, but the company is able to perform quicker turnarounds and serve the customer and their needs much more completely than their competition. Their craftsmanship is of the highest caliber.

Opportunities and Growth:

Substantial growth can be achieved by simply reaching out to more clients in the particular industry that they serve. The existing facility and equipment are sufficient to enable a buyer to grow the business.

Additional Info

The business was started in 1990, making the business 32 years old.
The sale will include inventory valued at $2,500, which is included in the suggested price.

The company has 3 employees and resides in a building with estimated square footage of 9,200 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the genuine factor and the one they say to you may be 2 totally different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is very crucial that you not rely entirely on a seller's word, yet instead, make use of the seller's answer in conjunction with your total due diligence. This will repaint an extra sensible image of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day profits. Certain factors such as new competitors growing up around the area, roadway building, and also staff turnover can influence repeat consumers and also negatively impact future incomes. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business regularly, the higher the chance to develop a returning customer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional median home income impact future income prospects?