Listing ID: 77549
Update on 12/01/2021: The business has recently secured a new blanket order from a customer for $1M+ to be fulfilled in the next 15 months. Even with components shortages across the industry, the revenue has been fairly stable over the last few years.
This ISO-Certified Printer Circuit Board (PCB) and contracts assembly manufacturer is profitable, well run and family owned for over 29+ years.
The business specializes in Low Volume High Mix (LVHM) assembly services, a business segment proven to be resilient against offshoring. This is a great opportunity for an existing player who wants to expand into California market and grow through an acquisition. This is also an opportunity for someone who manufacturers simitar products to expand their vertical.
The business comes with fully equipped assembly plant and new capital invested over $1M in 2020. All Assets – tools and equipment are in great condition and the company has consistently upgraded its automation capabilities over years. They have earned their reputation for their quality service, timely delivery, and reasonable price with several customers been with them over 10+ years. The plant is in a great location with long term attractive lease options available.
The business has long term loyal clients from various industries with. Employees are long tenured and well-trained which can enable a seamless transition.
- Asking Price: N/A
- Cash Flow: $1,223,722
- Gross Revenue: $3,259,247
- 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:38
- Furniture, Fixtures and Equipment:N/A
Owner is ready to retire
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell operating businesses. Nevertheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is really crucial that you not depend entirely on a vendor's word, yet rather, make use of the vendor's answer combined with your overall due diligence. This will paint a more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new clients? Many times, businesses have repeat clients, which create the core of their everyday revenues. Specific elements such as brand-new competition sprouting up around the location, road building and construction, and personnel turn over can affect repeat customers and adversely impact future earnings. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the opportunity to construct a returning consumer base. A last thought is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the regional median household earnings influence future income potential?