Business Overview

Founded in 1979, the firm specializes in production machining of custom high precision parts, components, and assemblies for OEM products. They utilize all of the latest high tech CNC Milling and Turning equipment available and support about 100 customers in many industries from light industrial all the way to medical devices. The business has 20 employees including highly skilled, detail-oriented machinists and a great core management team in place.
The company is ISO accredited and has a concentrated service area of GA and the Southeast; however, they routinely ship nationally and internationally.
KEY COMPANY HIGHLIGHTS:
• Very wide and diverse customer base of larger OEM’s who build products that require a special component or assembly not commercially available and must be custom manufactured.
• Multi axis equipment allowing completion of parts often in one operation.
• Utilizing all of the latest and best programming software and technological advances makes them highly efficient.
• The shop is full of modern CNC precision equipment regularly maintained and capable to hold well into the tenths of an inch on production runs.
SUSTAINED GROWTH OPPORTUNITIES:
• There exists a great opportunity to advance revenues with the addition of a sales representative.
• Immediate growth by implementing a targeted marketing program. The business currently does not have a marketing plan in place and relies on word of mouth as their main advertising.
• Add other machining capabilities such as Wire EDM (Electrical discharge machining) and others.

Financial

  • Asking Price: $2,600,000
  • Cash Flow: $308,000
  • Gross Revenue: $2,013,154
  • EBITDA: N/A
  • FF&E: $1,300,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

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

• 21,000 sq. ft. facility with 4,000 sq. ft. office, 11,000 sq. ft. climate controlled manufacturing area, and 6,000 sq. ft. non climate controlled manufacturing/storage space at the rate of $8,000 per month. • Room for expansion of services as facilities are about 80% utilized. • The facilities are owned and are available for purchase at fair market value.

Purpose For Selling:

Retire

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell companies. However, the true factor vs the one they tell you might be 2 entirely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be reasons to try to hide the reality of changing demographics, increased competition, current reduction in profits, or a range of other factors. This is why it is really vital that you not rely absolutely on a vendor's word, yet rather, make use of the seller's answer in conjunction with your general due diligence. This will repaint an extra sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can imply that revenue margins are too small. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that must be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract brand-new customers? Many times, businesses have repeat consumers, which develop the core of their day-to-day profits. Specific variables such as new competitors growing up around the location, road building and construction, as well as personnel turnover can impact repeat consumers and also negatively impact future incomes. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the greater the chance to develop a returning customer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local average house income effect future revenue potential?