Business Overview

This opportunity is a multi-axis precision CNC machining company in North Dakota that supplies high-quality machined and assembled components to the Hydraulic Equipment, Recreational, Agriculture, Wind Energy, Oil & Gas, and Construction Equipment industries. The Company’s customer base is generally comprised of publicly traded companies.

The Company offers prototyping, assembly, and multi-axis turning services tailored to the individual needs of each customer. To accomplish this, the Company has invested in advanced CNC multifunctional turning centers equipped with bar feeders, parts catchers, and robotic capabilities to handle projects of various sizes. The Company is ISO 9001:2015 certified and provides 100% traceability throughout all phases of its projects.

The Company was founded in the 1990s as a family-owned business and was later purchased by another organization (parent company). The Company is led by three managers who are not owners of the Company and will continue their roles post-sale. The facility sits on 1.77 acres of land and contains 14,144 square feet of space. The real estate is owned by the Company.

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. 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.
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Financial

  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $3,393,150
  • EBITDA: $587,813
  • FF&E: $1,365,860
  • Inventory: $436,035
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:14,144
  • Lot Size:N/A
  • Total Number of Employees:15
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates out of a 14,144 square foot facility: 5,955 square feet of machining space, 2,820 square feet of shipping and receiving space, a 1,600 square foot manual equipment room, a 704 square foot maintenance zone, 990 square feet of cold storage, 1,470 square feet of offices, 440 square feet of restroom space, and a 165 square foot quality lab.

Is Support & Training Included:

Ownership is passive. Key management will continue working in the Business post-transaction.

Purpose For Selling:

Ownership is pursuing other business ventures.

Pros and Cons:

1. Established Customers – Many are Large, Publicly Traded Companies 2. Major Parts Provided are Sole-Sourced 3. Many of the Company’s Parts Include Safety Implications that Create High Barriers to Entry for Competition 4. Company Culture Embraces Technology 5. Committed Group of Capable Employees in a Small Company Environment

Additional Info

The sale will include inventory valued at $436,035, which is included in the requested price.

The business has 15 employees and resides in a building with disclosed square footage of 14,144 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. However, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or an array of various other factors. This is why it is really important that you not depend completely on a vendor's word, yet rather, use the vendor's solution along with your total due diligence. This will paint a more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that profit margins are too thin. Lots of businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Many times, companies have repeat customers, which form the core of their daily revenues. Specific aspects such as new competitors growing up around the area, roadway building, and employee turn over can impact repeat clients and negatively influence future earnings. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business often, the better the chance to build a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local typical family income influence future earnings prospects?