Listing ID: 83967
Highly profitable metal fabrication business that has been successful by producing high quality parts in a timely manner for over 50 different customers. This business benefits from increasing demands for local manufacturing. Achievement of 10-20% annual growth has occurred without marketing. The business is well diversified in industry segments and have been told from current customers to expect significant increases in orders in 2022.
This business has been successful by offering a flexible work schedule and have a great work culture leading to a lower than industry standard turnover rate with many long term employees. Plenty of room for expansion. Primary work utilizes industrial laser cutters, press brakes, mig/tig and resistance welders and other well maintained equipment. This no frills operation produces great results for its customers and owners!
- Asking Price: N/A
- Cash Flow: $742,537
- Gross Revenue: $2,774,219
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:12,000
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
12,000 square foot facility is leased and have a great working relationship with the landlord. Opportunities to expand into the adjoining facility have been offered and purchasing the building in the future is a possibility.
Seller will provide training to help the purchaser take over providing a smooth transition while learning the business and its operating activities, gaining and understanding of the customers and vendor partners, and building a working relationship with the employees.
Seller wants to retire
Although it’s a competitive industry there has never been an shortage of work. Having an excellent reputation for high quality in a timely manner has led to a steady flow of business. In the current market more and more manufacturing work is being brought into the US and so competition has not been a detractor from revenue or profitability.
There are great opportunities to grow this business with room to expand without the need to move the company. The business has never needed to actively pursue new business (and still achieved 10-20% year over year growth), yet could significantly increase revenue with a marketing strategy, website development and even create some proprietary products supplementing the job shop activities.
The business was founded in 2006, making the business 16 years old.
The business has 12 employees and is situated in a building with estimated square footage of 12,000 sq ft.
The real estate is leased by the company for $4,875 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. However, the genuine factor vs the one they say to you might be 2 totally different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be justifications to try to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is extremely crucial that you not depend absolutely on a seller's word, but rather, make use of the vendor's answer in conjunction with your general due diligence. This will paint a much more reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover items like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too small. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new consumers? Many times, companies have repeat consumers, which form the core of their day-to-day revenues. Particular factors such as new competitors sprouting up around the area, roadway construction, as well as personnel turnover can affect repeat clients and also adversely impact future incomes. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the chance to construct a returning customer base. A final thought is the general area demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional mean home earnings effect future income prospects?