Business Overview

This Robotic Welding Manufacturing Business in Eastern Iowa is a sub-contract fabricator, welder, and powder coat painter of metal components for commercial and industrial machinery equipment manufacturers. The company provides precision welding with certified welders, robotic welding cells, and high-definition plasma cutting and specializes in automating parts their customers find difficult to weld manually. The company has a strong workforce with certified welders who are expertly trained and focused on providing quality work in a timely manner.

Financial

  • Asking Price: $1,990,000
  • Cash Flow: $126,208
  • Gross Revenue: $901,819
  • EBITDA: N/A
  • FF&E: $497,700
  • Inventory: $50,000
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:13
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The manufacturing facility is equipped with overhead cranes to accommodate moving of larger equipment through the welding process.

Is Support & Training Included:

As required.

Purpose For Selling:

Retirement.

Pros and Cons:

The business provides a unique service through their precision welding using a combination of robotic welding and certified welders which allows them to deliver the highest quality work in a timely manner for their customers.

Opportunities and Growth:

Future growth could be attained through an aggressive marketing plan to expand the brand beyond the current footprint and bring in more leads. The business could also add more workers including a sales force to convert new leads as well as a second shift of welders to handle the uptick in workload.

Additional Info

The venture was founded in 2002, making the business 20 years old.
The transaction doesn't include inventory valued at $50,000*, which ins't included in the suggested price.

The business has 13 employees and resides in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 totally different things. As an example, they might state "I have too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, current reduction in revenues, or a variety of other reasons. This is why it is very important that you not rely totally on a vendor's word, yet rather, utilize the seller's answer along with your overall due diligence. This will paint a much more realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that profit margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new customers? Many times, operating businesses have repeat consumers, which form the core of their everyday profits. Specific variables such as new competitors sprouting up around the area, road construction, as well as employee turn over can influence repeat clients as well as negatively affect future revenues. One important thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the opportunity to build a returning customer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the local mean household earnings influence future earnings potential?