Business Overview

Our client is a privately held machine builder that provides metalworking machines, automation systems and custom designs. The Company has been in business for over thirty years and has a strong brand and reputation in the market that can be leveraged to drive new business.

The Company has a branded line of machines and designs and manufactures custom machines. The ability to provide custom solutions to meet customers’ specific applications is a major point of distinction, attractive to its customer base.

Its core customer segments are companies in medical, aerospace, firearms, and other precision manufacturing industries. Medical is its primary vertical.Medical and aerospace are highly attractive, stable industries with unique needs matched by the Company.The Company does not have any customer concentration as customers typically only buy one machine per year.

Sales are typically direct to customer, although at times, opportunities may be sourced through a manufacturing representative.Sales efforts are nominal. It does not have a sales team, nor does it spend money on advertising or marketing. This presents a great opportunity for a growth-oriented buyer.

This is all accomplished with a small group of stable employees as well as owners who are actively involved in the business.


  • Asking Price: $725,000
  • Cash Flow: $400,000
  • Gross Revenue: $1,600,000
  • EBITDA: $275,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

The Company has come to the market due to one of the owners’ desire to retire.

Pros and Cons:

The Company builds highly specialized machines that its larger competitors are not interested in manufacturing as well as some unique products that are not offered by any competitor.

Opportunities and Growth:

It has a highly attractive customer base in desirable growth industries such as medical and aerospace. These are stable industries that have unique needs that match the Company’s expertise. The Company has a strong brand and reputation in the market which can be leveraged to drive new business. It has a strong foundation of base model machines that can be produced and sold in larger quantities with limited investment required. It is increasing its focus on automation and robotics, particularly in the medical industry where the demand for these capabilities is growing. Given the lack of any outbound sales or marketing activities, the addition of a dedicated effort should result in additional opportunities in both new and current markets.

Additional Info

The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the true reason and the one they say to you may be 2 absolutely different things. For instance, they might state "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, recent decrease in profits, or a variety of various other factors. This is why it is extremely essential that you not depend entirely on a vendor's word, however instead, utilize the seller's answer in conjunction with your general due diligence. This will paint an extra sensible image 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. Lots of companies finance loans so as to cover items like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in new consumers? Most times, companies have repeat customers, which create the core of their daily earnings. Certain elements such as new competitors sprouting up around the area, road building and construction, and employee turn over can impact repeat clients and negatively affect future revenues. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the regional typical household earnings impact future income prospects?