Listing ID: 77587
Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: https://pronovapartners.com/engagement/leading-new-england-commercial-and-military-ship-maintenance-company-for-sale/
The Company repairs ships ~ ocean-going, government, military, and commercially-owned working ships and tankers.
The ongoing maintenance of these vessels is a complex undertaking, but this multifaceted business has managed routine procedures and provided custom engineering and fabrication solutions expertly for 38 years. Specialized services include vibration analysis and thermography, which analyze/determine/predict machinery reliability and problems.
The work includes bringing in and employing high skill-level tradesmen and women who conduct fabrication/welding/mechanical/electrical/electronic/ and rigging. These specialized services are performed in conjunction with and under the direction of elite-level supervisors; professionals in maintenance and repair methodologies, contractual requirements, and shipyard management.
The business also offers a lucrative generator division in which it services more than 300 maintenance contracts for commercial and residential clients.
NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
- Asking Price: $3,475,000
- Cash Flow: $800,000
- Gross Revenue: $5,187,903
- EBITDA: $719,000
- FF&E: $350,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1983
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:19
- Furniture, Fixtures and Equipment:N/A
The Company rents two locations; a 4,500 sq. ft., administrative space they’ve occupied for the past 35 years, and a 10,000 sq. ft., offsite workshop. Administrative space rent of $4,345.00 per month is paid through April 30, 2024. Shop rent is $6,431.25 and the lease expires September 30, 2022. It is possible a Buyer can renew.
To ensure a smooth transition and ongoing success the Sellers will work with a buyer, initially for four weeks, then for up to six months to a year as part-time employees, on-call consultants, or as individually negotiated.
Both Sellers are looking to transition into full or part-time retirement.
There are few companies who do the same type of work; none to the same level of quality. Over the years, the Sellers have seen competitors come and go. However, there has always been enough work for all to stay busy and profitable. At this time, the Company cannot schedule all potential jobs and has turned down some work.
This is a going concern and finding skilled tradesmen and building the workforce (a nationwide issue in all industries) would help ensure stable growth. Hiring salespeople in the Generator and Ship Repair division, and developing more “sole source” products for the Government is a good place to start. Long-range, look to develop contacts/market capabilities to Offshore Wind Projects.
The company was started in 1983, making the business 39 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nonetheless, the true reason and the one they tell you may be 2 totally different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or an array of other factors. This is why it is very crucial that you not rely absolutely on a seller's word, however instead, make use of the vendor's response along with your overall due diligence. This will paint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that profit margins are too small. Lots of companies fall into 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 tools or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new customers? Most times, operating businesses have repeat customers, which form the core of their daily profits. Specific factors such as brand-new competitors sprouting up around the location, road construction, and staff turnover can affect repeat consumers and adversely affect future incomes. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the possibility to develop a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical household income effect future revenue potential?