Business Overview

Superior manufacturing company, solid book of business of manufacturing for wholesale farm implementation products (Disc Harrows, Box Blades, Scrape Blades, Haying Equipment and more) sold domestically and in International markets. Was unaffected by COVID as sales increased in 2020! Net income of 12.7% of sales and SDE of 35.2% of sales. Well-established business in production since 1982. Two long tenured employees who are well aware of specifications for product manufacturing and assembly. Owner strategically buys steel (secondary market and by the truckload) to superbly manage cost and increase profitability. Product typically sold by the tractor trailer load ($55,000 – $65,000 per load). Months of backlog on the books! Sale includes the business, some product sketches and production tools (including a 110 ton brake). Simplistic manufacturing processes, great cash flow. Owner looking to retire for medical reasons.


  • Asking Price: $299,900
  • Cash Flow: $160,764
  • Gross Revenue: $456,000
  • FF&E: N/A
  • Inventory: $100,000
  • Inventory Included: N/A
  • Established: N/A

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:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:


Additional Info

The sale doesn't include inventory valued at $100,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell businesses. Nonetheless, the true reason vs the one they say to you might be 2 entirely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in earnings, or an array of various other factors. This is why it is really essential that you not rely entirely on a vendor's word, yet rather, make use of the vendor's answer together with your total due diligence. This will paint a much more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too thin. Numerous businesses fall into 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 may have existing contracts with vendors that must be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new consumers? Many times, operating businesses have repeat consumers, which develop the core of their daily profits. Specific factors such as brand-new competition growing up around the location, road building, and employee turn over can affect repeat clients and negatively influence future profits. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the greater the possibility to develop a returning client base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the regional mean family earnings impact future revenue potential?