Business Description
After an excellent 20 year run, the founder/owner/seller of this mid-Michigan manufacturing business is ready to sell his attractive business and retire.
The majority of the company’s revenue comes from repair and rebuilding industrial machinery and metal forming equipment. To this end, the company employs four full-time and two part-time employees. All are both highly skilled and non-union. At his retirement age, the seller “is as busy as wants to be.” Given the company’s outstanding reputation, an energetic buyer using basic sales and marketing efforts can presumably take this great business to the next level.
The business is attractively priced at $450,000 which is 3 x 2010 and 2011 SDE and only 1.9 x 2012 SDE. The sale price includes equipment valued in place at $65,000. The seller will also carry a meaningful note for a qualified buyer and offer a customized transition program to meet the buyer’s needs. The bank (with the SBA) will finance a well qualified buyer could get into this business.
The business resides in a 15,000 square foot facility in a nice community just minutes from a major highway. The real estate, which has recently been refurbished, is in excellent condition. The building may be purchased separately at the recently appraised value of $450,000, or leased for $3,000/month which is only 3.5% of sales.
This unique business could be an excellent purchase by a growth minded financial buyer or as a tag-on for a strategic buyer. For more information on this solid business opportunity, please contact Glen Toadvine (glen@praxisbusinessbrokers.com or 734-929-9032).
About the Business
Year Established:
1993
Number of Employees:
4
Facilities:
Very nice recently renovated facility.
Market Outlook/Competition:
Tremendous potential with some sales and marketing activity
About the Sale
Reason For Selling:
Retirement
Training/Support:
Provided
Gross Revenue Comments:
2012
Cash Flow Comments:
2012
Seller Financing:
Negotiable
LISTING KEYWORDS: After an excellent 20 year run, the founder/owner/seller of this mid-Michigan manufacturing business is ready to sell his attractive business and retire. Like so many manufacturing related businesses, this company is recovering from the 2009-2010 recession. Last year (2011) sales surpassed $600,000. In 2012 (through August) year-to-date revenues are already nudging $800,000 with a strong fourth quarter in the forecast. The majority of the company s revenue comes from repair and rebuilding industrial machinery and metal forming equipment. To this end, the company employs five full-time and two part-time employees. All are both highly skilled and non-union. At his retirement age, the seller is as busy as wants to be. Given the company s outstanding reputation, an energetic buyer using basic sales and marketing efforts can presumably take this great business to the next level. In 2011 the business generated $125,000 of SDE (the cash flow available to pay an owner/operator and service debt). This year (2012) the business is tracking a very impressive $300,000 SDE. The business is attractively priced at $450,000 which is less than 4.0x 2011 s SDE and only 1.5x 2012 s projected SDE. The sale price includes equipment valued in place at $75,000. The seller will also carry a meaningful note for a qualified buyer and offer a customized transition program to meet the buyer s needs. The business resides in a 15,000 square foot facility in a nice community just minutes from a major highway. The real estate, which has recently been refurbished, is in excellent condition. The building may be purchased separately at the recently appraised value of $450,000, or leased for $3,750/month which is well under 5% of sales. This unique business could be an excellent purchase by a growth minded financial buyer or as a tag-on for a strategic buyer.
