Business Overview

This manufacturer of specialty machinery for sale in the Midwest has been designing and fabricating machines to process raw materials for over three decades. Its products are known for their reliability, ruggedness, and being being easy to operate with low-maintenance requirements. Due to their strong reputation for quality, the business has established itself as a top-tier manufacturer in their industry with customers in over 40 states and across the globe.


  • Asking Price: $1,700,000
  • Cash Flow: $447,572
  • Gross Revenue: $2,811,963
  • EBITDA: $447,572
  • FF&E: $469,170
  • Inventory: $350,000
  • Inventory Included: N/A
  • Established: 1987

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:12,000
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility is located on an approx. nine-acre lot with ample space for expansion of the operations or further development of the site. All administrative and manufacturing functions take place inside a 12,000 sq. ft. facility. There is an additional 3,000 sq. ft. of covered outdoor area as well as over 7,000 sq. ft of concrete parking.

Is Support & Training Included:

As Required.

Purpose For Selling:

Seller desires to pursue other business and personal interests.

Pros and Cons:

One of the competitive advantages of the business is their reputation for quality in the marketplace due to their long-lasting presence as a manufacturer of high-quality and reliable machines. The machines also use easy-to-acquire components making repairs straightforward while extending the life of the equipment across generations. The business has many customers whose machines have over 10,000 job hours and who continue to purchase from them over a span of many years.

Opportunities and Growth:

The business is well postured to grow by adding more employees to increase speed of production and sell more units. The manufacturing capacity of the business could be enhanced by bringing outsourced steel work in house which would lower costs and add to profitability. Marketing efforts could be ramped up to pursue additional customers whose businesses have a need to process raw materials. The business could also distribute their products through an established equipment dealer network.

Additional Info

The venture was established in 1987, making the business 35 years old.
The deal shall not include inventory valued at $350,000*, which ins't included in the listing price.

The business has 9 employees and is situated in a building with disclosed square footage of 12,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nevertheless, the true factor vs the one they say to you may be 2 absolutely different things. As an example, they might state "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a range of various other reasons. This is why it is very crucial that you not count entirely on a vendor's word, but rather, make use of the vendor's response in conjunction with your overall due diligence. This will repaint an extra practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too tight. 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 also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be satisfied or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in brand-new consumers? Most times, operating businesses have repeat consumers, which create the core of their everyday revenues. Certain factors such as brand-new competition growing up around the location, roadway construction, as well as staff turnover can influence repeat customers and also adversely impact future revenues. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean household earnings influence future earnings potential?