Business Overview

Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: https://pronovapartners.com/engagement/industrial-fastener-machining-company-for-sale/

This well-established CNC machining business, manufacturing parts for the aerospace industry specializes in custom fabrication of high-performance metal parts that require high-quality and close tolerances typical of aerospace and high-tech product components.

All work is performed as per customer-supplied specifications/drawings or based on reverse engineering. Customers are large aerospace component manufacturing companies, high technology manufacturing companies, aftermarket parts suppliers to aerospace OEMs, the military (mostly indirectly through other suppliers), and companies requiring prototype parts manufacturing and/or the fabrication of large tools & fixtures.

With its current equipment, workforce, industry reputation, and experience; the Company is an industry rarity in its ability to reverse-engineer almost any machined component. This ability brings much value to the business and additional opportunities to be capitalized on by a tech-savvy buyer.

Typical gross profit margin range of 60% to 90%, averaging around 75%
Revenue and Net Profit Growth rates averaging over 25% annually for 2018 through 2021

The Seller is committed to providing a “turn-key” experience to a Buyer, who will acquire its profitable operation along with its customers, know-how, great reputation, and truly exceptional growth potential.

NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Financial

  • Asking Price: $2,975,000
  • Cash Flow: $619,000
  • Gross Revenue: $1,130,600
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two side-by-side industrial units centrally located in the San Fernando Valley. Each unit is 1,965 sq. ft. and rents for $2,100 per month. The Seller just secured a year’s lease with an option to renew.

Is Support & Training Included:

To ensure a smooth transition and ongoing success for the buyer, the Seller will include four weeks of complimentary training, and up to six months support as a paid consultant.

Purpose For Selling:

The Seller is looking to retire and spend more time with his grandchildren.

Pros and Cons:

Competitors are few and far behind on quality and delivery capabilities. There are some lower-cost foreign and out-of-state fabrication and machine shops that thrive on low-margin, lower-quality, higher-volume contract machining jobs. However, the typical customer of this business put quality first and is willing to pay a high premium for the same.

Opportunities and Growth:

– Commit to AS9100 Certification rather than remaining AS9100 compliant. – Establish a website to showcase its quality of work and make the business processes easier. – Hire commissioned salesperson(s) to seek new opportunities.

Additional Info

The business was started in 2010, making the business 12 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. Nevertheless, the true factor vs the one they say to you may be 2 absolutely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competitors, current reduction in incomes, or a variety of other factors. This is why it is really vital that you not count totally on a seller's word, however instead, utilize the vendor's solution along with your general due diligence. This will paint a more practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Remember that in some cases this can mean that profit margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new customers? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Particular elements such as new competitors growing up around the area, road building, and also employee turnover can affect repeat consumers and adversely influence future profits. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the chance to develop a returning consumer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the regional average home earnings impact future income prospects?