Listing ID: 77560
44 year old family business with well established contact with government contractors for manufacturing high quality parts. Includes all drill presses, lathe, milling machine,band saw and custom tools to fabricate custom parts. They are responsible for engineering and fabrication of ‘exclusive’ DLA parts.
– ISO 9001.SAE9003.
– DLA-JCP (joint certification program) certification
– Award Management (SAM)
– Exclusive DLA contracts for NSN parts
– Current award May 2019 and November 2020 for parts production.
- Asking Price: $125,000
- Cash Flow: $31,452
- Gross Revenue: $89,540
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The business was founded in 1986, making the business 36 years old.
The transaction doesn't include inventory valued at $30,000*, which ins't included in the suggested price.
The business has 1 employees and is situated in a building with disclosed square footage of 2,000 sq ft.
The real estate is leased by the company for $1,400 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in profits, or a range of other reasons. This is why it is very essential that you not rely completely on a seller's word, but instead, use the seller's response together with your total due diligence. This will paint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that earnings margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new customers? Most times, businesses have repeat customers, which form the core of their everyday earnings. Particular variables such as new competition growing up around the location, roadway construction, and employee turnover can influence repeat consumers and also negatively affect future revenues. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional average home earnings impact future earnings potential?