Listing ID: 82446
This midwestern business provides custom engineering, design, and manufacture of complex electronic subsystems and components used in aerospace, satellite communication, and defense applications.
The Company pursues design projects that are likely to yield long-term manufacturing opportunities. Some designs have been in production almost 20 years and several of its current projects may run for the next 10 to 15 years.
Founded over 25 years ago, the Company has earned a great reputation hence there are many repeat customers and most new business arrives via referral. Existing connections with several important defense contractors will afford the acquirer the opportunity to continue building these relationships and engage in large projects.
A solid team of 23 is in place as well as a design and manufacturing facility with room for expansion as the business continues to grow. Ownership wants to remain with the company after an acquisition which will ensure a smooth transition and seamless transition of client relationships.
Revenue has grown steadily, is gaining momentum, the pipeline is full and 2022 looks even better!
This is an amazing opportunity for a strategic buyer to move into new markets, add customers, broaden, or deepen technical capabilities, add highly skilled engineering and production staff, and/or expand geographically.
- Asking Price: N/A
- Cash Flow: $510,000
- Gross Revenue: $2,900,000
- EBITDA: N/A
- FF&E: $1,000,000
- Inventory: $1,000,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:23
- Furniture, Fixtures and Equipment:N/A
The sale shall include inventory valued at $1,000,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. Nonetheless, the genuine reason and the one they say to you might be 2 totally different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a range of various other factors. This is why it is very essential that you not depend completely on a vendor's word, however instead, make use of the vendor's solution along with your total due diligence. This will repaint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Many times, companies have repeat consumers, which develop the core of their everyday profits. Specific aspects such as new competition growing up around the area, road construction, as well as staff turn over can affect repeat customers and also negatively impact future earnings. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to construct a returning client base. A last idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical home income impact future income prospects?