Business Overview

This is an unparalleled opportunity to own a leading machine shop in the Central Valley. Prominent features include brand stability, consistent incline in revenue trend, profitability growth during the pandemic, and ability to participate in selective distribution. This business specializes in customization and services including but not limited to welding, fabrication, manual/prototype machining, and CNC machining.
The volume of relationships as well as commercial contracts accumulated through 32 years of experience attribute to the quality of service this business provides. With a growing market demand and ample shop capacity for shift expansion, growth potential is tremendous. The current lease features favorable terms, offering a 12,000 sq. ft building consisting of a large production shop, laboratory, multifunctional office space, and lobby. It is important to mention that the business is currently ISO9001-2015 certified.
Currently the owners are working full-time in managerial roles and are willing to negotiate a transitional training period. However, their well-trained staff and loyal customer base provide an opportunity for a fluid transition to new ownership without disruption. This is a turn-key opportunity in the machine industry that is positioned for success.

Financial

  • Asking Price: $3,000,000
  • Cash Flow: $840,000
  • Gross Revenue: $2,750,000
  • 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 kinds of reasons people resolve to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 entirely different things. As an example, they might say "I have too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in profits, or a range of various other reasons. This is why it is really vital that you not rely absolutely on a seller's word, yet instead, use the seller's response along with your total due diligence. This will repaint a more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity 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 with the purpose of covering points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that profit margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday revenues. Specific elements such as new competitors sprouting up around the area, road construction, as well as employee turnover can impact repeat customers as well as adversely affect future revenues. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood median home earnings impact future revenue potential?