Listing ID: 76838
Contact business broker for more information regarding this well-established and niche technology manufacturing business for sale located in California.
Founded in 2005, this niche technology manufacturing business provides manufacturing services for microelectronics-enabling technology. Customers and industries served include medical device, aerospace, defense, optoelectronics, scientific and other commercial industries located around the world. The company’s manufacturing services provide an alternative approach to printed circuit board technology while still offering the ability to miniaturize integrated circuits. The company is ISO 13485 certified (medical device industry), ISO 9001 certified, ITAR registered, Military Specifications compliant and Aerospace Industry Standards compliant.
The company has approximately 18 employees, including two full-time working owners. After many years of strong growth and profitability, the business did suffer a downturn in 2020 and early 2021 during the pandemic as a result of downturns in the medical device and aerospace industries. Fortunately, the business is rebounding well, has a very strong backlog and is on track to return to pre-pandemic revenue levels in excess of $3 million by the end of this fiscal year (July 1, 2020 to June 30, 2022). The company has also successfully implemented price increases to improve profitability with several key customers.
The sellers will entertain either leasing or selling the building but the real estate price is not included in the asking price above. The asking price also does not include cash, accounts receivables or any liabilities. The sellers are open to reasonable seller financing terms. The owners are selling because they are ready to retire but will stay on for a reasonable period of time to assist with a smooth transition to new ownership if desired.
Contact business broker to complete a Non-Disclosure Agreement and receive more information regarding this well-established and niche technology manufacturing business for sale located in California.
- Asking Price: $2,000,000
- Cash Flow: N/A
- Gross Revenue: $3,000,000
- EBITDA: N/A
- FF&E: $375,000
- Inventory: $150,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2005, making the business 17 years old.
The deal will include inventory valued at $150,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nevertheless, the real factor and the one they tell you might be 2 entirely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be justifications to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other reasons. This is why it is really crucial that you not rely entirely on a vendor's word, yet rather, make use of the seller's answer combined with your general due diligence. This will repaint a more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that revenue margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new customers? Often times, companies have repeat consumers, which create the core of their daily revenues. Specific variables such as brand-new competitors growing up around the area, road construction, and employee turnover can impact repeat consumers and also negatively affect future profits. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional typical household earnings effect future income prospects?