Asking Price: $650,000 Gross Revenue: $1,730,000Cash Flow: $284,000EBITDA: $284,000Inventory: $20,000 included in asking priceFF&E: $200,000 included in asking priceReal Estate: $2,200,000 not included in asking priceShare this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
The 2018 Earnings were 284K from revenues of 1.73M. Their accountant switched their accounting from accrual to cash for 2018. This resulted in an add back related to this that the CPA can explain and is part of the summary of taxation attachment above. This means that the sales price of 650K is only 2 1/4 X the Earnings. This company has a steady net profit of 15% and most of their work comes from repairing and selling water pumps which is mostly recession proof business.
He also has 10 loyal employees including a long term manager. This is the normal amount of employees and he is currently looking to add an 11th employee to continue growing. He states that this business can grow to 3M in revenues by focusing sales efforts on current industries and by adding a couple of qualified employees.
The business has a lot of fully functional equipment and assets currently worth approximately 230K.
This is a tremendous opportunity with over 90% of revenue coming from current customers. That is a lot of recurring revenue coming from well diversified long-term client relationships. A buyer will get a business that has both work in progress and work waiting to be done. In other words, for the right technically oriented buyer, this business will not change the day of the closing. This company’s revenues consistently come from long-term industrial and municipal clients that pay in a timely manner.
Location: Located in the Northern half of the Front Range, CO
The Company is being offered for 650K which is only 2 1/4 X the earnings. This is a C corp and can be an “Asset” or a “Stock” sale. We are pricing it as an “Asset” sale but can adjust to a “Stock” sale if need be. The company is being offered for 650K debt free with the Seller willing to carry 10%. He will stay for as long as the Buyer needs him to in transition for a negotiated salary or hourly rate. He will leave all unused customer deposits, monies owed to vendors/employees etc and pay off all debts at the closing. The % completion method will be used for work in progress to be trued up once the jobs are complete. If the Buyer prefers a “Stock” sale, he will leave debt roughly equal to the AR and agree to a true up after 120 days to equalize the debt to the collected AR and cash.
Brief Overview and More Details:
The company repairs, re-builds, sells, and/or services both AC and DC current electro-mechanical equipment. They have many very long-term customers who need regular repairing and servicing of their electro-mechanical rotating and stationary equipment.
The Seller bought the business in 2010 and works 55 to 60 hours a week at the business but does not work on the equipment himself. He manages the business including meeting with customers, hiring/firing, works with suppliers, banking relationships, etc. Many companies currently have trouble keeping employees. They do not. The business has the finest employees in the industry the seller insists. The seller will stay on for a smooth transition including employees’, suppliers’, and customers’ relationships. The Seller prefers a buyer with electro-mechanical and general manufacturing experience. The seller knows how to grow the business. He is committed to help the new owner learn the details of his business and take the business to the next level.
The company has a solid reputation and has no legal battles. The company has had a great reputation with top notch customer service. They also have a stellar worker’s safety history without anything but small claims and enjoy a low workman’s’ comp rate due to their safety record. The seller will agree to full Reps and Warrantees to a solid legal and business standing. This is an "C Corp" and it
About the Business
Number of Employees:
Building Sq. Ft.:
The Property located in a designated enterprise zone is 1.01 acre with a 11,220 square foot custom built main building built in 1958. The main building has a conference room, 2 large offices, a large drive-in garage door, ample power, new swamp cooler, fenced yard, separate bathrooms, 5-ton and 6-ton overhead cranes, and two baking areas. The property is being offered for $2.2M to the buyer of the business only. The property is being offered separately from the business because it is owned by an LLC owned by the owner of the business separately. The Seller will consider a lease at his current rate of $10,500 per month triple net for the buyer of the business with the opportunity to buy the property exclusively for 2 years and a first right of refusal afterward.
Since 1974, the company has had a great reputation with top notch customer service. They also have a stellar worker’s safety history without anything but small claims and enjoy a low workman’s’ comp rate due to their safety record. The seller will agree to full Reps and Warrantees to a solid legal and business standing. This is an "C Corp" and it can be either a stock or an asset sale.
Growth & Expansion:
The seller has a wealth of knowledge and many ideas to grow the business. In short, he is committed to help the new owner learn the details of his business and take the business to the next level. The company has a solid reputation in the area and has no legal battles.
Marketing: They use very little advertising. The work finds them based on their reputation. They had only $2,600 in advertising in 2017 for example. The company has grown “organically”. If the new buyer wants to increase this growth rate, he/she could increase advertising, add a salesperson, and just accept more of the work being shown to them every week. They also have very little social media and social media marketing. No SEO, no Facebook, no Instagram. They do have a strong presence on LinkedIn.
44 Yr Old Industrial Electro-Mechanical Equip Repair, Sales & Service
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