Business Overview

This business was established in the 1950s and manufactures components for general aviation aircraft. This is a product that is in high demand and has very little in the way of competition. The company’s latest line of these products serves the experimental aircraft market, which is seeing strong growth. In addition, they both restore and broker the sale of aircraft. This segment of the business is booming with the sale of 28 aircraft in 2021. It is located in a low-cost area and staffed with skilled tradesmen who are willing to stay on following the sale. The business includes several FAA licenses and permits (listed below) in order to operate. Many of these are very difficult (or nearly impossible) and very expensive to acquire. The seller states that it would take several years to start this business from scratch and the PMAs alone would cost about $10M to replace.

Financials Asking Price: $2,500,000
Gross Revenue: $ 1,809,000 (2021)
Net Income: $704,928 (2021)
Inventory: $299,000 – included in purchase price

Business Details
Hours of Operation: M-F
Established: 1950s
FAA Licenses:
PMA (Parts Manufacturing Authority)
PAH (Production Approval Holder)
42 STCs (Supplemental Type Certificates)
TSOAs (Technical Standard Order Authorizations)
DMIR in house (Designated Manufacturer Inspection Representative)
Transition: Seller will assist.
Employment contracts required for key personnel.
Reason for Sale: Other opportunities

5.5-acre property, with ample room for expansion of manufacturing, storage and aircraft sales.
Situated immediately adjacent to a regional airfield.
24-hour avgas (100LL) available on the airfield
14,000 sq ft manufacturing, office facility and engineering executive space.
Fully outfitted for manufacturing – tools and equipment are included 3-phase power.
Offices and conference room.

Financial

  • Asking Price: $2,500,000
  • Cash Flow: $704,928
  • Gross Revenue: $1,809,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $299,000
  • Inventory Included: Yes
  • Established: 1950

Detailed Information

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

5.5-acre property, with ample room for expansion of manufacturing, storage and aircraft sales. Situated immediately adjacent to a regional airfield. 24-hour avgas (100LL) available on the airfield. 14,000 sq ft manufacturing, office facility and engineering executive space. Fully outfitted for manufacturing - tools and equipment are included 3-phase power. Offices and conference room.

Is Support & Training Included:

Seller will assist, key employees will stay

Purpose For Selling:

other opportunities

Additional Info

The venture was started in 1950, making the business 72 years old.
The sale will include inventory valued at $299,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. However, the real factor vs the one they say to you may be 2 totally different things. As an example, they might claim "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competition, current reduction in profits, or an array of other factors. This is why it is extremely crucial that you not depend completely on a seller's word, however rather, use the vendor's solution together with your total due diligence. This will paint a more reasonable image of the business's present scenario.

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 deal. Numerous companies borrow money so as to cover items such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in new consumers? Most times, operating businesses have repeat customers, which develop the core of their day-to-day earnings. Certain factors such as new competitors growing up around the area, roadway construction, and staff turn over can influence repeat consumers and adversely impact future profits. One crucial point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the chance to build a returning client base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the local average family income impact future income prospects?