Listing ID: 76773
Patented Specialty parts manufacturer for CNC industry. Long term established international clients with consistent yearly sales and profit. Unique opportunity to build on current product and services into the regional market area. Owner willing to train as needed for amicable transition of ownership.
All qualified individuals are encouraged to complete an NDA and Buyer Profile to receive more information,
Tradesman Drill Press
Small Drill Press / Bench Top Type
Benchtop Belt Sander
Big Joe Lift
1 HP Horizontal Band Saw
GANESH GMV-2 Variable Speed Milling Machine
MAZAK Model SUPER QUICK TURN 10M
HP-4 hydraulic bench type transfer molding press
Poncho Enterprises 6″ X 12″ HAND FEED SURFACE GRINDER
- Asking Price: $259,000
- Cash Flow: $70,000
- Gross Revenue: $105,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $32,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2004, making the business 18 years old.
The deal does include inventory valued at $32,000, which is included in the asking price.
The company has 2 (owners) employees and is situated in a building with disclosed square footage of 1,500 sq ft.
The property is leased by the company for $1,180 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. However, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or a variety of various other factors. This is why it is very crucial that you not count totally on a seller's word, yet instead, make use of the seller's answer combined with your general due diligence. This will paint a much more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that profit margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new clients? Often times, companies have repeat customers, which form the core of their day-to-day profits. Particular variables such as brand-new competitors growing up around the location, roadway construction, as well as personnel turnover can influence repeat consumers and also negatively impact future earnings. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood average family earnings influence future earnings potential?