Business Overview


The Company provides sharpening and repair services to the wood industry, specializing in tooling for panel mills (e.g., plywood, oriented strand board or OSB, particle board, medium-density fiberboard or MDF, and high-density fiberboard or HDF). The Company also offers customers a variety of readymade cutting tools from several vendors, and can custom design and build tooling for special applications. It also offers production analysis, inventory control, and troubleshooting services. The Company operates from 3 facilities (two service centers and one storage facility) totaling over 12,250 square feet.


Rising Gross Profit Trend – The Company’s gross profit margins as a percentage of revenue grew from 45% to 54% between 2017 and 2019, as ownership implemented technology and employee training to maximize efficiency and quality.

Strong Net Working Capital – The Company’s current and quick ratios were 3.8 and 3.5, respectively, at December 31, 2019. Ratios above 1.0 generally indicate strength in a firm’s ability to meet short-term obligations.

Strong Client Relationships – The Company has clients across the US, including industry leaders with long-term relationships.

Overall Historical Earnings Growth – Earnings as measured by EBITDA grew overall at a 168% CAGR between 2017 and 2019.

Superior Name and Reputation – With over 24 years of stellar operations, the Company has an excellent reputation as one of the best sharpening and repair companies in the timber industry.


  • Asking Price: N/A
  • Cash Flow: N/A
  • Gross Revenue: $1,200,000
  • EBITDA: $112,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the genuine factor and the one they tell you may be 2 absolutely different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other factors. This is why it is very important that you not depend completely on a vendor's word, yet instead, utilize the seller's response along with your overall due diligence. This will paint a more practical picture of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that earnings margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location draw in brand-new clients? Most times, operating businesses have repeat clients, which form the core of their daily profits. Specific variables such as new competitors sprouting up around the location, roadway building, and also staff turn over can impact repeat clients and also negatively affect future earnings. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business often, the greater the possibility to develop a returning client base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the local median family income impact future earnings potential?