Listing ID: 81601
Business Overview
This is a standout opportunity to purchase and own a high demand manufacturing process to produce Gorilla Composites structural building panels. The potential gross / net revenue for just 1 shift of production is $7,661,644.00 per year. If you reach full capacity your revenue will be $22,984,932.00 gross net! Gorilla Composites panels are the leader in the new low-carbon panelized construction for modular and manufactured housing to name a few. Addressing the high demand for low cost of construction and rapid build high-quality assemblies.
The Gorilla Composites stressed skin panel with an expanded impregnated honeycomb core is unique in its exceptional strength to weight ratio. These panels are manufactured to perform as load bearing walls, floors, roofs, and non-bearing walls. No framing is required with the construction of the Gorilla Composite Panels. Any finish can be applied after construction such as plaster board, stucco, simulated or real brick, stone, siding, or paint. The finishes can be suited according to local demands or regional appearances.
Structural Building Panels are manufactured on a proprietary production line. This intermediate structural composite (ISC), which is unique to this purpose, addresses all aspects of the construction and related industries. The production line is designed to produce one precision 4’ x 8’ panel every 60 seconds. Each line per shift will produce 120,000 panels per year on a 5-day work week, 50 weeks per year. The opportunity is to purchase one or more production lines and begin manufacturing in an exclusive, protected marketing territory.
This opportunity would be well fitted for someone with knowledge in the building trades or have a good understanding as to how to run a manufacturing business. You should have an existing facility, or the capacity to add-on to an existing facility and should also be familiar with and comfortable selling into the local building trade market. Experience with Architects, Civil Engineers, Planners, Surveyors and local building codes is an advantage, but not required.
Financial
- Asking Price: $1,520,280
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The production machinery is 195 feet long. Additional space is required on both ends to accommodate input and output from the machinery. Each machine requires a team of 6 to operate per shift. Total capacity per machine is estimated at 450,000 panels per year maximum capacity.
Includes the machinery, shipping, installation, GCI product license and training.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the real factor and the one they tell you might be 2 absolutely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in profits, or a variety of various other reasons. This is why it is really vital that you not count entirely on a vendor's word, but instead, use the seller's answer together with your general due diligence. This will paint an extra practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that earnings margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new consumers? Most times, businesses have repeat customers, which develop the core of their day-to-day revenues. Specific variables such as brand-new competitors sprouting up around the area, road construction, and staff turnover can affect repeat customers and negatively influence future revenues. One essential point to think about is the placement of the business. Is it in a very trafficked shopping mall, 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 customer base. A last thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the regional mean house income impact future earnings potential?
