Listing ID: 76562
UNDER CONTRACT — UNDER CONTRACT — UNDER CONTRACT
As we experience a resurgence in domestic manufacturing demand, CNC machine shops are a core component to the supply chain. CNC machine shops provide critical manufacturing, design prototyping and production capabilities for a wide array of industries.
This CNC machine shop in the Colorado Front Range makes precision parts for a loyal customer base (incl. military, aerospace, medical, robotics). Approved supplier for the US Department of Defense, this ISO 9001:2015 CNC machine shop serves ~30 customers annually and has the infrastructure in place to support additional growth.
The business currently thrives with minimal marketing and business development efforts. Customers remain loyal because of the industry leading quality standards adhered to, immediate product feedback to their engineers, and for the rapid turnaround time this CNC machine shop is capable of providing.
The owners have more than 30 years of managing and operating machine shops. Its team of machinists and operators are experienced in CNC prototype and production machining, multi-axis CNC milling and turning, aerospace requirements, and working with exotic materials.
Contact us, register with us, sign our NDA and receive our confidential Offering Summary on this extraordinary opportunity!
- Asking Price: $2,890,000
- Cash Flow: $800,920
- Gross Revenue: $1,900,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,900
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Facilities: Description • Approx. 900 square feet of office space • Approx. 6,000 square feet of manufacturing space
Owner willing to stay and train new owner(s)
Owner looking to pursue other interests
• Increase output without expanding physical footprint by adding additional multi-axis machines and a second shift • Seek additional long-term contracts to increase production batch sizes & automation, while decreasing cost per unit • Recruit and hire a full-time salesperson with the skillset to assist customers with product design in addition to pure sales • Develop a sales strategy and team to grow in segments beyond the existing customer base (military, aerospace, medical, flight, robotics) • Grow regional market share within the satellite industry by contacting and selling to new industry entrants • Elevate key employees into leadership positions • Optimize website SEO, social media, and online presence to drive new business
The business was founded in 2014, making the business 8 years old.
The company has 10 employees and resides in a building with approx. square footage of 6,900 sq ft.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell businesses. However, the genuine factor vs the one they say to you may be 2 completely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in incomes, or an array of other factors. This is why it is really essential that you not count absolutely on a vendor's word, but rather, use the vendor's response in conjunction with your total due diligence. This will paint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover things like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that profit margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Certain variables such as new competitors growing up around the location, roadway construction, and staff turn over can impact repeat clients and also negatively impact future earnings. One important point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the chance to build a returning customer base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the neighborhood average family earnings influence future income prospects?