Business Overview

This Company is a distributor, rebuilder, and servicer of new and used machine tools and parts. The Company has an extensive 90+ year history that has firmly entrenched it in the industry. The Company started as the primary distributor of a leading brand of machine tools back in the 1930s. Over the years, the Company has expanded its offering to other popular machine tools and started offering repair services, parts sales, and rebuilds of these machine tools in the 1950s. The long-standing employee base has unmatched expertise in the machine tools the Company represents, making the Company the go-to provider of services for these brands.

The Company has a deep history and relationship with each of the brands it represents. Many of these machine tool manufacturers are drawn to the Company due to the current owner and company’s national reputation for offering outstanding service and a passion for giving back to the local Midwest community. Customers choose the Company because they receive personalized service when purchasing machine tools and top-quality repairs from employees that have an intimate knowledge of each tool the Company offers services for. The Company’s customers include many of the largest manufacturing companies in the country that generate repeat sales.

The Company has two owners, husband (75%) and wife (25%). The husband is actively involved in the Business as a salesperson, and his wife has been phasing herself out of the Business and currently only handles billing. The Company features nine other employees that can operate mostly independently from the input of the owners.

The Company operates out of a single facility. The facility is 25,000 square feet, including an office space, demo room, and warehouse. The facility is equipped with three exterior loading docks and 14-foot ceilings. The facility is in excellent condition and was built in 1961. The owners are flexible to sell or lease the facility to the new owner(s).

Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. In addition, you will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found, please email info@caldergr.com and request a PDF version.

Once we receive your NDA and answers to some basic questions, the Confidential Information Memorandum (CIM) will be sent to you by the project manager.

IF YOU DO NOT RECEIVE A FOLLOW-UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email info@caldergr.com for support. Thank you in advance!

Financial

  • Asking Price: N/A
  • Cash Flow: $423,831
  • Gross Revenue: $3,050,975
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $524,603
  • Inventory Included: Yes
  • Established: 1931

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:25,000
  • Lot Size:N/A
  • Total Number of Employees:11
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates out of a single facility. The facility is 25,000 square feet, including an office space, demo room, and warehouse. The facility is equipped with three exterior loading docks and 14-foot ceilings. The facility is in excellent condition and was built in 1961.

Is Support & Training Included:

The primary owner is willing to negotiate staying on full-time for a short period and part-time for an extended period post-transaction to ensure a smooth transition. He is also willing to stay on indefinitely in a consulting role and as a salesman.

Purpose For Selling:

Ownership would like to retire and pursue other interests.

Pros and Cons:

Investment Highlights Include: (1) Long-Standing Customer Base – Customers choose the Company because of the employees' expertise and personalized assistance. The employees have unmatched knowledge of the machine tools they sell and service, which causes customers both large and small to choose the Company over its competitors. (2) Established Distribution Agreements – The Company has long-standing relationships with each machine tool manufacturer the Company represents. Many of these distribution and service agreements have been around for decades, and the Company has established a reputation of intimate knowledge with each tool. (3) Unique Employee Knowledge Base – The Company’s employees have expertise in the service of machine tools that few other companies could match. This knowledge is due to the close relationships the Company has with the machine tool manufacturers and is what keeps customers coming back for more. (4) Community Involvement – The Company has established a reputation for giving back to the community through relationships with local schools to encourage young people to pursue careers in manufacturing. These relationships provide massive amounts of exposure to the Company. (5) Highly Awarded Management Team – The primary owner has been the subject of numerous manufacturing conferences and articles in popular newspapers and magazines that provide additional exposure to the Company.

Opportunities and Growth:

Growth Opportunities Include: (1) Website Optimization – The Company has a clean and informative website; however, there is room for improvement in Search Engine Optimization and the Company’s overall online presence. (2) Add Product Lines – The Company has close relationships with each machine tool manufacturer it represents and has turned down many additional product lines due to the lack of personnel to represent these new product lines. However, with the addition of new personnel, nothing is stopping the Company from pursuing additional products. (3) Expand Customer Base – The Company lacks a sufficient quantity of sales personal and has not been able to capture all the national demand for its services. Despite this, the Company recently added a major manufacturer of electric vehicles to its customer base and is looking to leverage this relationship to add more customers in the electric vehicle industry with the addition of more sales representatives. (4) Develop Sales Team – To capture unmet demand, the Company will need to increase sales personnel to grow the customer base and allow for geographic expansion. (5) Increase Service Team – The service division is one of the most well-run divisions within the Company. However, current service orders are backed up due to insufficient staffing.

Additional Info

The venture was founded in 1931, making the business 91 years old.
The deal shall include inventory valued at $524,603, which is included in the requested price.

The business has 11 employees and resides in a building with disclosed square footage of 25,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 totally different things. For instance, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of other factors. This is why it is really vital that you not depend completely on a seller's word, but rather, make use of the vendor's solution combined with your general due diligence. This will repaint a more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that profit margins are too tight. Numerous businesses fall into a revolving door of taking loans 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 equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in brand-new customers? Most times, businesses have repeat clients, which develop the core of their daily revenues. Particular factors such as new competitors sprouting up around the area, roadway building and construction, as well as personnel turnover can affect repeat clients and also adversely impact future revenues. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional average household earnings effect future revenue potential?