Listing ID: 80981

Business Overview

Take over the reins of this highly successful business. Family-owned for decades, it is time for the current owner to retire. Company has an impressive range of tools, fasteners and industrial supplies for machining, manufacturing and industrial applications. Located in Central California, the company and its staff have a solid reputation for excellence – and they have the ability to certify product for all the various regulations, to back that up.

The business is located in the business hub of Santa Barbara County, a future-sighted, entrepreneurial business community. The locale is safe, active and prides itself on the high quality of life available to its residents.

Santa Barbara County has a variety of high-tech research and manufacturing companies. The close proximity to the University of California, Santa Barbara, provides continuous access to a talented workforce.

The community exemplifies diversity and balance in all aspects, from housing (single-family homes as well as multi-family apartments) to the business sector, with established and thriving businesses alongside startups.

The area has quiet neighborhood streets as well as smoothly flowing freeways, vineyards, open spaces and farms near high technology and manufacturing businesses. There are lively local farmers’ markets, diverse scenic views that include ocean and island vistas — as well as the backdrop of the Santa Ynez Mountains and foothills — all providing a range of opportunities for passive recreation and active sports.

Financial

  • Asking Price: $400,000
  • Cash Flow: $186,741
  • Gross Revenue: $1,137,620
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 1967

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,940
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Building 5,940 sf Leased

Is Support & Training Included:

2 Weeks. They have a great staff in place, who handle daily operations.

Purpose For Selling:

Retirement.

Pros and Cons:

Business has hard-to-find fasteners and tools that others do not stock. Competitive wholesale and retail pricing. Free local daily delivery.

Opportunities and Growth:

Adding an e-commerce component for difficult to find tools and fasteners plus increased use of outside sales personnel, would allow a new owner to expand the business.

Additional Info

The venture was started in 1967, making the business 55 years old.
The deal shall not include inventory valued at $200,000*, which ins't included in the listing price.

The company has 8 employees and is located in a building with approx. square footage of 5,940 sq ft.
The building is leased by the company for $5,940 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell operating businesses. Nonetheless, the real reason vs the one they say to you might be 2 absolutely different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current decrease in earnings, or an array of various other factors. This is why it is really vital that you not depend totally on a vendor's word, yet instead, make use of the vendor's solution together with your general due diligence. This will paint a much more reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in new clients? Many times, businesses have repeat clients, which form the core of their daily revenues. Particular variables such as brand-new competitors growing up around the location, roadway building, and also employee turn over can impact repeat clients and negatively affect future earnings. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the opportunity to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the local typical family earnings influence future revenue potential?