Business Overview

Unique opportunity to own this well established, growing and profitable industrial services company specializing in manufacturing, repairing and servicing of hydraulics.

The Company serves several industries in the region including agriculture, construction, transportation, manufacturing and more, and has grown 69% over the past two years!

Talented technical staff are in place to continue building on a solid reputation of timely and quality service to the customers and industries served.

Customer inventory of $100,000 included in sale price.

Also available 20,500 square foot building built in 2015 and constructed of 24′ tilt-up concrete walls, in very close proximity to the intersection of East West and North South interstate and highway systems providing easy access to additional customers in a 60 mile radius. List price $2,200,000

Financial

  • Asking Price: $2,600,000
  • Cash Flow: $549,000
  • Gross Revenue: $1,950,000
  • EBITDA: N/A
  • FF&E: $925,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: 2004

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:20,500
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

20,500 square foot facility located less than one mile of interstate and major North/South and East/West highways. Equipment is newer and maintained in excellent condition as evidenced by customer comments when touring the shop.

Is Support & Training Included:

Owner is available to train and transition to the new owner.

Purpose For Selling:

Retirement

Pros and Cons:

While a small handful of competitors exists in the region, the unique capabilities and strong quality reputation of the Company are unmatched, as evidenced by the fact that our competitors will subcontract work to the Company, while we rarely have to do the same.

Opportunities and Growth:

Prior to 2018, the owner operated another business and lead the hydraulic business on a primarily absentee owner basis. In devoting his full time attention to the hydraulic business, he grew sales 69% from 2018 to 2020, and in spite of covid related parts shortages year-to-date sales are up over 2020! The Company today operate just one shift which could be expanded with the addition of another machinist and mechanic, taking sales to $3M. With the addition of a second or third shift, and fully utilizing the investment in remanufacturing and repair equipment, sales could easily grow to $10M plus. There is no shortage of new business and growth potential. Hydraulics are used in many industries and the Company currently services agriculture, construction, transportation, manufacturing, hospitals, and more. And while some industries can be cyclical, the industries served are essential and thus much more predictable and stable over the years.

Additional Info

The company was established in 2004, making the business 18 years old.
The transaction does include inventory valued at $100,000, which is included in the asking price.

The company has 7 employees and resides in a building with approx. square footage of 20,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell businesses. Nevertheless, the genuine reason vs the one they tell you might be 2 entirely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in revenues, or a range of other factors. This is why it is extremely essential that you not depend totally on a vendor's word, but rather, make use of the seller's response together with your general due diligence. This will paint an extra practical image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that profit margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in brand-new customers? Many times, operating businesses have repeat clients, which form the core of their daily earnings. Certain elements such as new competition growing up around the area, road building and construction, and also employee turn over can affect repeat clients and negatively impact future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the greater the chance to construct a returning client base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the local mean household income effect future revenue potential?