Listing ID: 79107
This business, located in Central New Hampshire has specialized in Computer Numerical Control machining since 1987 when the company was founded by the current owner. It operates as an S Corporation with the seller as the sole principal. The real estate is owned by the seller under a separate entity and is available for sale should a buyer for the business be interested in purchasing the real estate rather than leasing it.
This company prides itself on providing quality parts to a variety of industries. They provide the raw parts for tools used in the plastics mold industry; welded bellows technology for semiconductor, aerospace/aircraft, ultra-high vacuum applications; all types of aerosol valves; surgical specialties; interventional and therapeutic devices; and original equipment manufacturing in the medical product field.
A new owner needs industry knowledge, engineering background (but does not need to be an engineer), ability to work with numbers, and be customer service oriented. Also, excellent negotiation skills are a plus and also understanding that investing in first-class machinery is not an expense but a necessity.
- Asking Price: $599,900
- Cash Flow: $286,609
- Gross Revenue: $557,813
- EBITDA: $137,393
- FF&E: $190,175
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1987
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:5,176
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The company operates out of 5,176 square foot facility on 4.9 acres. The building, built in 1986 is all on one level and built on a slab. An addition was added in 1996. There is ample parking for 20+ vehicles on site. The building features vinyl, cinderblock, and metal siding and is serviced by private sewer and water. Heat to the building is supplied by propane fired radiant and hot air systems. The property is available for purchase with the business, or a lease will be negotiated for a new owner at a rate of approximately $4000 per month. Details for the real estate are available separately.
The owner is willing to train a buyer for two weeks at no charge and there may also be an opportunity for the seller’s continued involvement as an employee or consultant after the transition period if a new owner should require that.
The owner is looking to retire after 34 years of running his own machine shop.
The seller feels that business can be positively impacted by hiring more qualified machinists and adding a second shift. Concentrate more on sales and marketing to attract new customers but also maximize the amount of business from existing customers.
The company was established in 1987, making the business 35 years old.
The sale will include inventory valued at $10,000, which is included in the listing price.
The company has 3 employees and resides in a building with estimated square footage of 5,176 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nevertheless, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, recent decrease in profits, or a range of various other reasons. This is why it is very important that you not count entirely on a vendor's word, however rather, utilize the vendor's response combined with your general due diligence. This will paint a much more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that profit margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be met or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new consumers? Often times, businesses have repeat customers, which create the core of their daily earnings. Certain elements such as brand-new competitors sprouting up around the location, roadway construction, as well as personnel turnover can impact repeat customers as well as adversely impact future profits. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning client 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 local typical family earnings influence future income prospects?