Business Overview

A tremendous opportunity to own a precision metal fabrication shop with a reputation for quality. The family-owned business has been around for over 100 years. The owners are ready to retire and transition the business. The real estate is available for sale separately as well should a qualified buyer be interested.

The business produces a wide array of products for both contractors and homeowners. They produce all types of fabricated metals for numerous applications. In addition to all the in-house capabilities the business offers on-site fabrication and installation services for customers that require them.

The business is operated from a large manufacturing facility in Southern New Hampshire which has additional capacity based on need. The location makes accessing all areas of New England easy. The business has AISC certification.

This could be ideal for an existing fabricator to add to its capabilities complete with the shop and experienced workforce. It could also be a fit for a construction company that currently subcontracts its metal fabrication out who would like to bring it in house.

Financial

  • Asking Price: $950,000
  • Cash Flow: $397,316
  • Gross Revenue: $2,797,128
  • EBITDA: N/A
  • FF&E: $465,000
  • Inventory: $20,000
  • Inventory Included: N/A
  • Established: 1921

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:14,800
  • Lot Size:N/A
  • Total Number of Employees:17
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates out of a multi-acre facility on a main road. The property was purchased as the company grew. There are multiple buildings that contain 12,400 square feet of manufacturing space and 2,400 square feet of office space. The owners feel that the existing facility has been more than adequate for the business over the time that they have operated there and that it could handle an increase in volume quite easily. The property is available for purchase with the business, or a lease will be negotiated for a new owner who may be looking to purchase the business only.

Is Support & Training Included:

Current owner will provide training for two weeks for up to 40 hours per week as part of the sale. Additional owner time can be negotiated.

Purpose For Selling:

The sellers are looking to retire.

Pros and Cons:

The sellers believe that there is no direct competition to what they do in their market area.

Opportunities and Growth:

One segment of the business includes a niche providing special handling products for the power industry. There is an opportunity to expand this segment of the business with assistance from the current owners. Additionally, the business currently does no marketing due to their reputation and longevity. An active sales and marketing program would surely enhance the revenue base.

Additional Info

The company was established in 1921, making the business 101 years old.
The sale doesn't include inventory valued at $20,000*, which ins't included in the suggested price.

The business has 17 employees and is located in a building with approx. square footage of 14,800 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. However, the real factor and the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current decrease in incomes, or a range of other factors. This is why it is extremely vital that you not count entirely on a vendor's word, yet instead, make use of the vendor's response combined with your general due diligence. This will repaint a more reasonable picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that earnings margins are too tight. Many businesses fall under a revolving door of taking loans 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 building where the business resides. The business might have existing agreements with vendors that have to be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in new clients? Most times, businesses have repeat clients, which create the core of their day-to-day profits. Particular variables such as new competition sprouting up around the location, road construction, as well as employee turnover can influence repeat customers and also adversely impact future earnings. One essential thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the regional average house earnings effect future income potential?