Listing ID: 84068
A well-established metal fabricator, independently owned and operated. This company specializes in design, welding and finishing of custom metal products.
With a reputation for short lead times and outstanding quality, this company stands behind every one of its products, whether it produces one piece or one thousand.
Specialized Engineering and Fabrication departments allow this company to rival much larger fabrication shops in flexibility to customize their products. The employees have an
Average 30 years within the metal fabrication industry. This company has many longstanding clients in the military, infrastructure, medical, security, and commercial industries.
After years of consistent success, the current owner is planning on retirement.
- Asking Price: N/A
- Cash Flow: $602,000
- Gross Revenue: $2,500,000
- EBITDA: N/A
- FF&E: $669,040
- Inventory: $193,085
- Inventory Included: Yes
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:18
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2008, making the business 14 years old.
The sale shall include inventory valued at $193,085, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nevertheless, the true factor vs the one they tell you may be 2 entirely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competitors, current reduction in earnings, or a variety of various other factors. This is why it is really important that you not rely entirely on a seller's word, yet instead, make use of the seller's solution in conjunction with your total due diligence. This will paint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that revenue margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Many times, businesses have repeat clients, which develop the core of their daily revenues. Specific variables such as brand-new competition sprouting up around the location, roadway building, and staff turnover can affect repeat clients and also negatively influence future earnings. One crucial point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the greater the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the local average home earnings effect future earnings prospects?