Listing ID: 77538
This global electronic manufacturing company is in the heart of Silicon Valley. They manufacture sensor-based devices that measure temperature, humidity, CO2, and vibration. These intelligent sensors are used for shipping, storage, or stationary applications. For more than 25 years now, the company has been designing and manufacturing state-of-the-art data collecting solutions that cover cryogenic to high temperature applications. Currently the company is transforming its legacy devices to next generation IoT platform for remote and real time monitoring capabilities.
The company serves Fortune 500 clients, governmental agencies, and diverse small to medium size businesses. The company has well established dealer network and excellent relationship with semiconductor industry and Asian customer base.
Great opportunity for businesses or investors interested in life sciences, labs, logistics, IoT and edge computing segments.
- Asking Price: N/A
- Cash Flow: $268,840
- Gross Revenue: $2,066,381
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Owner is ready to retire
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the real reason and the one they tell you might be 2 absolutely different things. For instance, they might state "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is very vital that you not count totally on a seller's word, yet instead, make use of the vendor's solution in conjunction with your general due diligence. This will paint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that earnings margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new clients? Often times, operating businesses have repeat customers, which create the core of their everyday profits. Particular elements such as brand-new competition growing up around the area, road construction, and personnel turnover can affect repeat clients and negatively affect future revenues. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the higher the chance to construct a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the local mean house earnings impact future earnings potential?