Listing ID: 77603
Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: https://pronovapartners.com/engagement/fortune-500-client-calibration-and-testing-business-for-sale/
This respected, sixteen-year-old Company services the testing needs for Fortune 500 companies as a tier one supplier and is an ISO/IEC 17025-2005 A2LA accredited laboratory. The Company provides a group of services such as ISO calibration on new and existing test equipment, offers equipment upgrades and builds new equipment. Being a one-stop-shop truly sets them apart when serving the automotive, medical, civil, and aerospace industries.
The Company is certified to perform calibrations for Servo Hydraulic test equipment, Dynamometer systems, Shore Western Equipment and other controllers. In addition to providing services, they also calibrate MTS & Instron (Schenk-Pegasus) machinery, Roerig, MOOG-FCS and Shore Western test systems.
As business grows for highly technical skills and engineering services, it’s time to look at financial options to keep up with demand and prepare to fully capitalize on the future.
Our client is open to a complete buy-out or a strategic equity investor to provide limited funding so this respected business can better serve its Fortune 500 clients and claim market share.
Agreeable terms may include above-market interest rates over a short term, or convertible debt options so it can move quickly to fulfill the backlog of requisitions and expand alternative profit centers within its operations.
The testing industry founded on the principle that improperly maintained equipment can be costly in terms of time and money. Performing regular calibrations via established methods as part of an effective predictive maintenance strategy can help eliminate costly downtime or reruns; prevent quality control problems and reduce product recalls.
NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
- Asking Price: $2,000,000
- Cash Flow: $45,000
- Gross Revenue: $815,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
No facilities. Workspace and lab are located in a building on a rural, commercial property.
The Seller will work with a Buyer on an executive; engineering level to ensure future success.
To afford the infrastructure needed to take the processes to the next level in b
Major competitors are all large companies that work on large, lengthy projects. The market to develop small and medium projects is much greater and will allow for exponential growth. However, the client has long been able to out-compete and outclass any competing service provider in terms of looking beyond “quick fixes” and providing long-term solutions to the testing equipment industry.
Recent hiring of salespeople and a project manager has shown the benefits of good processes, but a backlog is developing. The market for qualified and certified testing facilities grew substantially in 2019, and is expected to increase further by 2024. Expected growth will be generated by servicing testing equipment at new and expanded production lines within big industry. In understanding this demand, the Company has been able to create products that can compete head-to-head with any other testing provider while maintaining a branded service profile.
The venture was started in 2015, making the business 7 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. Nevertheless, the genuine reason and the one they tell you might be 2 completely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competition, recent decrease in revenues, or an array of other reasons. This is why it is really vital that you not depend entirely on a vendor's word, but instead, make use of the seller's response in conjunction with your overall due diligence. This will repaint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new clients? Often times, operating businesses have repeat customers, which form the core of their daily profits. Certain factors such as brand-new competition sprouting up around the location, roadway building, as well as staff turnover can affect repeat customers and adversely influence future incomes. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the better the chance to construct a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Just how might the regional median family earnings effect future earnings prospects?