Business Overview

Proprietary Process Design and Development, Turn-key Equipment Manufacturing and Assembly, Contract Metal Fabrication for OEM’s.
Industries served include: Industrial, Commercial, Energy, Environmental, Chemical, Agricultural, Radio Frequency, Misc. other

Financial

  • Asking Price: $4,700,000
  • Cash Flow: $1,300,000
  • Gross Revenue: $3,500,000
  • EBITDA: $1,300,000
  • FF&E: $2,500,000
  • Inventory: $300,000
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:26,700
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Customized manufacturing (approx 22,500 sf) and office (approx 4,200 sf) facility. Plenty of room for growth and expansion. Available for aquisition from business owner.

Is Support & Training Included:

Owner willing for long-term transition. Long-term and experienced workforce.

Purpose For Selling:

Retirement from ownership

Pros and Cons:

Uniquely positioned

Opportunities and Growth:

National Sales Force effort will greatly expand the business

Additional Info

The company was established in 1998, making the business 24 years old.
The transaction shall not include inventory valued at $300,000*, which ins't included in the listing price.

The business has 20 employees and is situated in a building with estimated square footage of 26,700 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in revenues, or an array of various other factors. This is why it is very crucial that you not rely absolutely on a seller's word, however instead, use the vendor's solution combined with your total due diligence. This will repaint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover points such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that revenue margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in brand-new customers? Many times, businesses have repeat clients, which create the core of their daily earnings. Specific elements such as new competition sprouting up around the area, road construction, and also personnel turnover can impact repeat customers and negatively affect future incomes. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the possibility to build a returning customer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average household income impact future revenue prospects?