Business Overview

Production manufacturing company established for over 60 years with unique capabilities, $1.5 million sales, $497,220 Discretionary Earnings and pre-approved for SBA financing with a 15% down payment is available for acquisition.

The company provides parts across several industries including electronics, medical, irrigation, fluid-flow control systems, automotive, and could expand into Aerospace. The company is ready for ISO-9001 certification and has an excellent reputation for quality and on-time delivery. The company has proprietary manufacturing equipment that allows it to produce high tolerance parts, in production quantities, at competitive prices.

The company has a CAGR of 13% from 2018 through 2021 and the owner-seller has built a company with excellent infrastructure, procedures, and a team of 5 employees including a Production Manager, Tool Maker, and 3 equipment operators.

Summary:
* Offered at $1.15 million + inventory & A/R
* $1.5 million 2021 sales
* $497,220 million Discretionary Earnings
* $140,253 Down w/SBA Financing

Staff
* 5 employees
* Production Manager & Tooling Design-Tool Making
* Toolmaker
* 3 Production Technicians-Machine Operators

Buyer Skills and Requirements:
The owner is actively running this business and the buyer will have to be willing and capable of learning to run the business. While the buyer does not necessarily have to be a trained machinist or have CNC experience, they must be willing and capable of learning the technical aspects of this business and running it. This is not a passive owner business.

The Seller will provide training for 4 weeks/40 hours per week and in addition, will provide limited consulting as negotiated after the initial training period.

Reason for Selling:
The owner is moving to Northern CA.

Inquiries from principals only

Financial

  • Asking Price: $1,150,000
  • Cash Flow: $497,220
  • Gross Revenue: $1,516,044
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1970

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Owner is moving to Northern CA

Additional Info

The venture was started in 1970, making the business 52 years old.

The company has 5 employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell companies. However, the genuine reason vs the one they say to you might be 2 entirely different things. For instance, they might state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or an array of other factors. This is why it is extremely vital that you not rely completely on a seller's word, but instead, use the seller's response combined with your general due diligence. This will repaint an extra reasonable picture of the business's existing situation.

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 offer. Lots of companies borrow money in order to cover points such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that earnings margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area draw in brand-new clients? Most times, businesses have repeat consumers, which form the core of their daily revenues. Certain elements such as new competition sprouting up around the area, road building, and also personnel turn over can influence repeat consumers and also adversely affect future earnings. One vital point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning consumer base. A final thought is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical household income influence future income prospects?