Listing ID: 75087
This well-established Scale Company is a supplier of weighing instruments ranging from floor scales to ultra-micro balances. Clients include all levels of government institutions and private sector companies. They range from nutraceutical manufacturers, copper mine assay labs, aerospace, chemical manufacturers, universities, R&D labs, crime labs, hospitals, and a variety of other clients that require precise weighing instruments. They are a licensed service company with the Arizona Department of Weights and Measures. All of their scale technicians are also registered with the Arizona Department of Weights and Measures. They are accredited through the International Accreditation Service, offering on-site ISO 17025 calibrations in the Southwest area. Sales are nationwide. They have a GSA contract with supplier agreements with two major global manufacturers. Helpful, but not required, if potential buyers have experience in the scale and weighing industry.
- Asking Price: $499,000
- Cash Flow: $164,820
- Gross Revenue: $1,194,963
- EBITDA: N/A
- FF&E: $206,500
- Inventory: N/A
- Inventory Included: N/A
- Established: 1978
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,744
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business was established in 1978, making the business 44 years old.
The company has 5 employees and resides in a building with disclosed square footage of 1,744 sq ft.
The property is leased by the company for $2,058 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nevertheless, the real reason vs the one they tell you may be 2 absolutely different things. As an example, they may state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in earnings, or a range of other factors. This is why it is very important that you not count totally on a seller's word, however instead, use the seller's solution combined with your general due diligence. This will repaint an extra reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new consumers? Many times, businesses have repeat clients, which develop the core of their daily earnings. Specific aspects such as new competitors growing up around the location, roadway construction, and personnel turnover can affect repeat consumers as well as adversely affect future profits. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning consumer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local typical household income effect future earnings prospects?