Listing ID: 83753
Electronic Assembly Services located in the suburbs of the Twin Cities. This company was established in 1992. The company provides many services, which include, printed circuit board assemblies (single and double sided and multi-layered boards, both SMT and Thru-Hole assemblies, controlled and differential impedance boards, box build, panel assemblies and test fixtures, high pitch BGA layouts and development of PCBs with high current/voltage. They also do turn- key, which is when they buy all the materials and assemble. They offer kitted, in which case the customer supplies materials. The company enjoys a good reputation and solid clients. The electronics industry is predicted to increase due to China/shipping issues. They serve Agriculture, Aviation, Electronics, Food, Healthcare, Military and more. Daily responsibilities of the owner include sales & marketing, purchasing, accounting and involvement with engineering decisions from time to time. This company is perfect for anyone looking to own a small business with endless potential.
FACILITIES: 4,200 sq. ft. leased space. Rent is $2,910.00 plus utilities. The seller feels that this facility could double in sales without increasing the sq. ft. or equipment. Lease expires July 31, 2022, with an option to extend.
EMPLOYEES: The business has a staff of two part-time employees (both do assembly work).
REVENUE: Revenue in 2021 was approx. $106,287, 2020 was $75,360, 2019 was $130,355, 2018 was $199,329.
ASKING PRICE: The asking price for the business is $95,000. Included in the price but not limited to are the furniture, fixtures, and equipment (value of approximately $107,000). Long term Client List, Website, Goodwill and Business Name. Seller willing to help set up the equipment and program machines so a buyer can start using it on their existing builds (locally only) and offer virtual technical assistance on equipment for 3 months at no charge to buyer. Inventory which is valued at $5,000 (at cost) is included as well.
REASON FOR SALE: Family, seller will provide the necessary training to insure a smooth transition.
- Asking Price: $95,000
- Cash Flow: N/A
- Gross Revenue: $186,300
- EBITDA: N/A
- FF&E: $107,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
4,200 sq. ft. leased space. Rent is $2,910.00 plus utilities. The seller feels that this facility could double in sales without increasing the sq. ft. or equipment. Lease expires July 31, 2022, with an option to extend.
Seller willing to train new owner at no cost to them. In addition seller to help set up the equipment and program machines so a buyer can start using it on their existing builds (locally only) and offer virtual technical assistance on equipment for 3 months at no charge to buyer.
With everything going on with China the US market is going to open up.
The company was established in 1992, making the business 30 years old.
The transaction shall include inventory valued at $5,000, which is included in the asking price.
The company has 2 employees and is located in a building with approx. square footage of 4,200 sq ft.
The property is leased by the business for $2,910 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. However, the true reason vs the one they tell you may be 2 totally different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or an array of various other factors. This is why it is very vital that you not depend entirely on a seller's word, but rather, use the seller's solution along with your general due diligence. This will repaint a much more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that profit margins are too thin. Many businesses fall into 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 commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new consumers? Many times, operating businesses have repeat consumers, which develop the core of their daily profits. Specific factors such as brand-new competitors growing up around the area, roadway building and construction, as well as personnel turnover can influence repeat consumers and negatively impact future incomes. One vital thing to think about is the location 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 on a regular basis, the higher the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the local median home earnings influence future income potential?