Business Overview

Manufacturer of High Precision Parts & Assemblies, Price: $3.2 million

ISO9001 Certified machine shop producing custom, high precision parts and assemblies for brand name customers in aerospace, medical, fiber optic, food and beverage, and electronics industries. Utilizes wire EDM’s, CNC’s, Water Jet cutting machines, 3D Printing. Well known for quality products, accuracy, and on-time deliveries. Management team in place. 4-Year average SDE of $767,876 and 4-year average EBITDA of $637,876.


  • Asking Price: $3,200,000
  • Cash Flow: $767,876
  • Gross Revenue: $2,300,000
  • EBITDA: $637,876
  • FF&E: $968,660
  • Inventory: $273,000
  • Inventory Included: Yes
  • Established: 1964

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:24,000
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leased, 24,000 SQ FT

Is Support & Training Included:

2-4 Weeks, then consulting

Purpose For Selling:

Health Issues

Additional Info

The venture was started in 1964, making the business 58 years old.
The transaction shall include inventory valued at $273,000, which is included in the listing price.

The business has 14 employees and is located in a building with estimated square footage of 24,000 sq ft.
The property is leased by the company for $8,280 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or a variety of various other reasons. This is why it is extremely essential that you not rely entirely on a vendor's word, but rather, make use of the seller's answer together with your total due diligence. This will paint an extra sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover things such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new customers? Often times, operating businesses have repeat clients, which develop the core of their daily profits. Certain aspects such as new competitors growing up around the location, road building, as well as personnel turnover can affect repeat clients and adversely influence future earnings. One essential point to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning customer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood typical household earnings effect future income potential?