Business Overview

Annual Sales
2016: $1.7MM
2017: $1.9MM
2018: $1.9MM
2019: $1.8MM
2020: $1.8MM
2021 YTD June $1.2MM and $400K Net Income

The Business makes and repairs parts & equipment for the leading 24/7 industrial businesses and corporations predominantly operating on or near the Mississippi River.

The Business provides Machining, Fabrication and Millwright services to industrial, manufacturing and mining customers who rely on the Business for both large scale heavy-duty problem solving, fabrication and assembly, as well as smaller scale higher volume recurring job shop metal finishing.

The two founders started this business in 2003 after working with various regional industrial customers and service providers for over 46 years combined.

Seventeen years later, with over 80 years combined problem solving behind them, both are focused on the most effective transition of their knowledge to a new generation.

The Sellers have engaged Marigold to find the strategic Buyer who can most effectively leverage their experience, equipment, customers and capacity.

Business Asking Price: $1,400,000
Seller willing to finance up to 20% of sales price, terms to be determined.

Background
The business employs 10 full-time employees, half of which manage fabrication projects and the other half of which manage machining projects. Select team members will go on-site to customer’s job sites to do consulting, custom fabrication, installations and repairs.

Both Sellers (50/50 ownership) are currently working full-time as well.

One Seller (currently focused on fabrication projects and finance) is open to working for a new owner in business development and sales, having an extensive sales background.
And, this Seller is also open to going fishing more often, too.

The other Seller (currently focused on machining projects & on-site customer problem solving) would prefer to continue working for the new owner for 1-3 years in order to ensure his legacy information and contacts are successfully transitioned to the new owner.

Equipment FMV Over $640,000
Sellers have extensive equipment suitable for large scale heavy duty fabrication and repairs as well as small scale small volume highly technical finish work.

Midwest Location Valued at $800,000
Seller maintains 40,000 square feet under roof on over 2.5 acres with large workshops, warehousing, offices, storage, large overhead floor level doors, straight truck height loading docks, and excellent paved areas for large truck traffic and parking. Dormant rail onsite that can be activated. There’s ample room for expansion.

Seller’s Valuation of its property is $800,000 and is not included in Business Purchase Price above. Seller prefers to sell the property with the business.

Financial

  • Asking Price: $1,400,000
  • Cash Flow: N/A
  • Gross Revenue: $1,200,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller maintains 40,000 square feet under roof on over 2.5 acres with large workshops, warehousing, offices, storage, large overhead floor level doors, straight truck height loading docks, and excellent paved areas for large truck traffic and parking.

Purpose For Selling:

Retirement

Additional Info

The venture was founded in 2003, making the business 19 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell operating businesses. Nevertheless, the real reason vs the one they tell you may be 2 absolutely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is very vital that you not count absolutely on a vendor's word, but instead, use the vendor's solution combined with your total due diligence. This will repaint a much more realistic picture of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover things like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that earnings margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be met or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new clients? Many times, operating businesses have repeat customers, which develop the core of their daily earnings. Particular variables such as new competition growing up around the area, road construction, as well as personnel turnover can influence repeat customers as well as negatively influence future earnings. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local median house income influence future income potential?