Listing ID: 81539

Business Overview

This company has been serving the region and local area for over 30 years. The company is well respected, both in their communities and their industries. As one of the region’s premier custom architectural metal companies, this firm has been a go-to company for building owners and contractors to tackle complex projects.

Supporting the custom architectural business is a successful commercial and residential HVAC business that has helped this company enjoy steady growth during all economic environments including a steady foundation during challenging ones.

The company owns its own equipment and has no debt. The company has a steady history of revenue with decent growth and a backlog of work into 2022 that looks to maintain the success the company has had over the past many years.

The current owners and team are open to participating in a transition program that will ensure seamless operational transfer to a new ownership team.

Financial

  • Asking Price: $2,325,000
  • Cash Flow: $624,438
  • Gross Revenue: $5,000,000
  • EBITDA: $625,000
  • FF&E: $750,000
  • Inventory: $200,000
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:11,200
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The current facility is owned by the ownership team. The property is a 11,200 building on approximately 1.25 acres. There is office, warehouse and machine space included. The company has recently invested in new metal working equipment.

Is Support & Training Included:

The current ownership team is readily available for a structured ownership transition that will include full training and support for viable long term success.

Purpose For Selling:

Owners wish to retire.

Pros and Cons:

While there is competition it is limited. The company has remained focused on its current offering for the entire 30+ years it has been in operations. The company is involved in the industry, local and regional areas and is well respected by both competitors and suppliers.

Opportunities and Growth:

The company is poised for growth. It has recently invested in new computerized equipment that has increased its utilization ability without the cost correlation often anticipated for growth in this industry. The companies biggest challenge is the current pandemic environment, however WIP and backlog continue to support the most recent record revenue performance numbers.

Additional Info

The venture was started in 1990, making the business 32 years old.
The transaction shall include inventory valued at $200,000, which is included in the asking price.

The company has 10-25 employees and resides in a building with estimated square footage of 11,200 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nonetheless, the real factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or a range of various other factors. This is why it is very essential that you not rely completely on a vendor's word, however rather, make use of the seller's response combined with your overall due diligence. This will repaint a more sensible image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering points like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that profit margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in new consumers? Often times, businesses have repeat consumers, which form the core of their everyday revenues. Particular factors such as new competition growing up around the location, roadway construction, and personnel turn over can affect repeat consumers and adversely affect future revenues. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to build a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? Exactly how might the neighborhood average household income effect future earnings prospects?