Business Overview

***IN ESCROW*** Profitable Master Distributor of Precision Instruments has strong distribution agreements with leading manufacturers and steady sales to hundreds of customers who place the products in many industries. Products manufactured in Europe, Asia, and North America have less tariff exposure than many competitors. Private label high-margin house brand expands their markets and is expected to keep growing. Price includes $550,000 of active salable inventory at cost. Inventory turns well and consistent replenishment serves the company’s customers that need fast turnaround.

Experienced staff and excellent full-service facility in a thriving community in Southern California very near a major freeway which gives great access for inbound and outbound shipments. Founding owners are thinking about retirement and have been tuning up the systems and preparing to transition to new owners.

This is a highly confidential matter and no additional information will be provided until a Confidentiality Agreement, background information and Proof of Funds has been submitted. Please hit the reply button or contact Shannon Brown at shannon@mabusinessadvisors.com or 818-497-6866 to receive the needed documents and to learn more about this opportunity.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: $390,000
  • Gross Revenue: $2,200,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $550,000
  • Inventory Included: Yes
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:9,800
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Southern California in the greater Los Angeles region near a major freeway. Warehouse and office space in an industrial park area.

Is Support & Training Included:

Seller will provide training at no cost to qualified buyer.

Purpose For Selling:

Retiring

Pros and Cons:

This company is a significant force in its industry with strong supply agreements with top manufacturers and a deep bench of customers.

Opportunities and Growth:

New product technologies encourage end-users to modernize their equipment. Seller to discuss other growth strategies.

Additional Info

The company was started in 2002, making the business 20 years old.
The sale shall include inventory valued at $550,000, which is included in the requested price.

The business has 4 employees and is situated in a building with approx. square footage of 9,800 sq ft.
The building is leased by the business for $8,800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you may be 2 completely different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of other factors. This is why it is very crucial that you not depend totally on a seller's word, yet instead, make use of the vendor's answer together with your overall due diligence. This will paint a more practical picture of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover points like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that profit margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in new consumers? Often times, operating businesses have repeat customers, which develop the core of their everyday revenues. Certain elements such as new competition growing up around the location, road building, and also staff turn over can affect repeat customers and also adversely affect future earnings. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the chance to construct a returning consumer base. A last idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood median household income impact future revenue prospects?