Business Overview

Premier – High Precision Machining Company certified ISO9000 and AS9100D, established in 1977 and located in central California. This operation is a gem. Daily operations are fully managed through a mid-management team that have been with the company for over 20 years.

The company consistently produces excellent profits on higher than traditional margins, due to high efficiency. It sports an equipment inventory of approx. $2,000,000 with $700,00 having been purchased within the last three years. In addition to the typical three, four, and five axis lathes, this company has an inventory of special use options such as Jig Boards and wire cutting EDM machines. The array of capabilities has made it a “go to” shop for the Aerospace, Medical, Military, Commercial, and Electronics industries.

In addition to machining, the company offers assembly to its customers and manages a complete clean room for specialty needs. Its QA array can inspect parts to the .0001” tolerance. All of this within its 16,000 sq ft, fully temperature controlled, facility.

The business maintains up-to-date clean books and records. The owner triages every project and can account for every job’s profitability as compared to original bid. The trained team of machinists consistently exceed expectation and bid margins by over 8%.

The acquisition can be immediately accretive to sales and the bottom line and includes IP, Key technologies, key employees, expanding backlog, and growth opportunities.

Financial

  • Asking Price: $3,700,000
  • Cash Flow: $1,050,000
  • Gross Revenue: $2,940,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retiring

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is very important that you not count totally on a vendor's word, yet rather, use the vendor's response in conjunction with your general due diligence. This will paint a more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that revenue margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be met or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new clients? Many times, companies have repeat consumers, which develop the core of their everyday profits. Certain variables such as new competition growing up around the location, road building and construction, and also personnel turn over can impact repeat clients and also adversely impact future incomes. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the greater the possibility to develop a returning client base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood average home income impact future revenue prospects?