IN ESCROW - Profitable Manufacturer’s Service Biz in Bonding of Metal

Los Angeles County, CA

Seller Financing Available
Sample Products
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Asking Price: $695,000

Cash Flow: $335,637

Gross Revenue: $1,021,354

EBITDA: N/A

FF&E: N/A

Inventory: $25,000

Real Estate: N/A

Established: 1959

IN ESCROW - Profitable Manufacturer’s Service Biz in Bonding of Metal

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Business Description

IN ESCROW - Long standing, profitable “Niche” manufacturer’s service business. Specializing in industrial bonding of primarily electrical motor parts used in a wide range of applications. The company offers two exclusive services: 1) Bonding of Electrical Motor Lamination; and 2) Epoxy Insulation Coatings. The company operates primarily in the Bonding/Epoxy of Metal Products industry within the Fabricated Metal Products sector. In business for over 60 years, this company has a reputation for providing quality, cost-effective solutions as an independent company for large manufactures that outsource this much needed process. Located in the heart of Los Angeles near downtown. As per the seller, the company has an impressive list of well-known manufacturers who manufacture primarily electric motors or pumps that are used in a wide range of application including the automotive, aerospace, medical devices along with many other types of industries and applications. These manufactures look to this company to handle this process which requires skilled employees and equipment, all of which this company has in place.

Historical annual revenue for several years has averaged $950,000 - $1,020,000 / annually and cash flow has averaged $325,000+/-. The year to date revenue and cash flow is trending upwards and the year to date monthly gross revenue is averaging $86,308+/-/month and on track to be over $1M annualized. The figures in this ad are from previous years.

The company has built a solid customer base with repeat customers and effective word-of-mouth referrals that continue to grow the business with virtually no sales and marketing effort. As per the seller, the company has not done anything to market their services for many many years. Company has a national customer base along with a significant customer base in Southern California. The company maintains a nominal amount of inventory (included in the asking price). ALL of the parts or components this company works on are provided by the customer. This company then utilizes its equipment, expertise and trained employees to bond and or epoxy the customer's parts and then they are shipped back to the customer to be used in finalizing the products that they manufacture. As the seller says, they provide a “service” for their customers. Long term employees are in place, many have been on board for more than 20 years. The ownership is made up of an elderly owner in his mid 90's who owns the majority of the company and two sons in their 70's who work at the business 4 days per week and will consider staying on if required. As per the owners, the responsibilities of the owner and learning this business is straight forward. The ownership will provide ample training as part of the purchase price and provide seller finance for a qualified buyer with sufficient down payment. The real estate (9,330Sf industrial building) is available for sale at $2,295,000 or for lease at $12,000/month (this negotiable - seller to discuss).

There is strong growth potential as there are just a handful of companies nationally in the Fabricated Metal Product sector that provide this “niche” service. Many companies rely on this service to outsource this process as it is not cost efficient for companies to invest in the equipment and staff needed to complete this process. As per the seller, the company has no marketing plan in place and there is no website or on-line presence. A new owner has significant opportunity to develop a formal sales/marketing programs to further grow the business. Seller will discuss this further.

Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button above or email your information and reference this ad to info@certifiedbizbroker.com to receive a confidentiality agreement and learn more about this unique opportunity.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Building SF:
9,330
Employees:
12
Facilities:
Company operates from an industrial building owned by seller. Building is available for lease or sale.
Competition:
Limited. Seller to discuss
Growth & Expansion:
Several growth opportunities that seller will discuss.
Financing:
Seller will consider seller finance for a qualified buyer
Support & Training:
Seller will provide training to qualified buyer at no additional cost.
Reason for Selling:
Elderly owner looking to retire
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Contact the Seller

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Matt Coletta, CBB, CBI, M&AMI

Business Listed By:
Matt Coletta, CBI, CBB

M&A Business Advisors

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Memberships & Certifications:
Indicates membership in The California Association of Business Brokers (CABB). The CABB Certified Business Broker (CBB) certification distinguishes its holder as a seasoned professional who has a solid educational background, proven accomplishments in completing deals, and an active membership in the CABB.

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