Business Overview

This turnaround opportunity is a machine shop and manufacturing business that produces a niche specialty product utilized in a wide variety of industries. The Company employs a skilled and loyal workforce that has an average tenure of 10+ years. The employees have the ability to work with limited oversight and have the skills to find a solution for any problem a customer needs solved.

With the Company’s engineers, specialized experience, and vast equipment base, the Company can complete over 90% of its work in-house. This allows the Company to provide the highest levels of customer satisfaction with complete control over the quality, timeline, and budget on every project. In addition, the Company offers overnight service for the repair or replacement of critical parts, which has saved its customers thousands of dollars when a broken part halts production.

The Company was founded in the 1980s by the current owner. The Owner desires to transition into retirement. He is willing to stay on 1-2 years and transition to a consulting role beyond that.

The Company operates out of two facilities. One facility is 24,305 square feet, including approximately 5,500 square feet of office space. This facility is equipped with one 15-ton and two 5-ton cranes, a full fire suppression system, 2 rows of 480V Bus Ducts, and 2 rows of 240V Bus Ducts. This facility is in excellent condition. The second facility is 8,351 square feet and recently received a $700,000 renovation.

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Financial

  • Asking Price: N/A
  • Cash Flow: $306,498
  • Gross Revenue: $7,032,586
  • EBITDA: N/A
  • FF&E: $4,156,000
  • Inventory: $646,792
  • Inventory Included: Yes
  • Established: 1985

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:32,656
  • Lot Size:N/A
  • Total Number of Employees:43
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Company operates out of two facilities. One facility is 24,305 square feet, including approximately 5,500 square feet of office space. This facility is equipped with one 15-ton and two 5-ton cranes, a full fire suppression system, 2 rows of 480V Bus Ducts, and 2 rows of 240V Bus Ducts. This facility is in excellent condition. The second facility is 8,351 square feet and recently received a $700,000 renovation.

Is Support & Training Included:

Ownership is willing to stay on for 1-2 years post-transaction to ensure a smooth transition. Beyond that, Ownership is willing to stay involved in a consulting manner to assist with quoting, training, and giving general business advice.

Purpose For Selling:

Ownership would like to retire.

Pros and Cons:

(1) Experienced and Loyal Staff (2) Longstanding Reputation and Relationships (3) Low Customer Concentration

Opportunities and Growth:

(1) Investments in Equipment Base (2) Implementing a Second Shift (3) Expanding the Sales Team

Additional Info

The company was started in 1985, making the business 37 years old.
The deal will include inventory valued at $646,792, which is included in the suggested price.

The company has 43 employees and resides in a building with estimated square footage of 32,656 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell companies. However, the genuine reason and the one they say to you may be 2 totally different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is extremely vital that you not rely absolutely on a vendor's word, but rather, make use of the seller's solution in conjunction with your overall due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too small. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to 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 may have existing contracts with vendors that should be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new customers? Most times, companies have repeat customers, which develop the core of their daily earnings. Specific variables such as brand-new competitors sprouting up around the location, roadway construction, as well as personnel turn over can impact repeat clients as well as adversely impact future revenues. One crucial point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the greater the chance to build a returning customer base. A final idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? How might the regional mean household income influence future earnings potential?