Powder Coating Biz - High Quality = High Margins

North Hollywood, CA (Los Angeles County)

Seller Financing Available
Photo
Contact Seller

Asking Price: $779,000

Cash Flow: $194,425

Gross Revenue: $795,951

EBITDA: $238,863

FF&E: $800,000

Inventory: $65,000

Established: 1984

Powder Coating Biz - High Quality = High Margins

Save Print Share Valuation Report

Business Description

Powder Coating Biz - High Quality = High Margins

Confidential Information Memorandum (CIM) available upon receipt of our short online NDA - visit here: http://www.pronovapartners.com/engagement/powder-coating-biz-high-quality-high-margins/

The Company has grown thanks to its high-quality work, that centers around providing expert powder coating for select hardware manufacturers.

This 35-year-old business has built a strong customer base, developed a reputation for consistently high-quality, reliable services at attractive prices. Approximately 300 customers served in the past 5 years.

The Company has long-established relationships with top raw material vendors giving them inside information, years of knowledge and excellent bargaining power. Raw materials inventory requirements are very low. But initial space and equipment are not, making this a high-barrier entry business for those thinking about starting from scratch.

However, as an essentially service-oriented business, margins are attractive and grow each year.

Detailed Information

Core competence is - quality, cost, delivery. The process for each order includes:

Pre-treatment=>pre-inspection=>apply powder coatings =>final inspection & packaging.

AQMD license is available and transferrable.

Inventory is included in price.

Facilities: The entire building is approximately 30,000 sq. ft. The business leases a portion of the building to sub-tenants, so the effective rent is only $7,118 per month. This provides some flexibility for future expansion without relocation.

Competition: There is competition from local providers, but top competitors have their own specialties and usually different customers, and this Company is differentiated because of their focus on quality, cost and delivery, as well as long term relationship with customers/suppliers.

Also, the industry has high barrier to entry due to the high initial capital investment to meet equipment requirements.

Growth & Expansion: Sellers are not savvy marketers. This becomes a growth/expansion opportunity if a new owner can increase marketing efforts overall and master online marketing opportunities as well as establish/grow social media platforms.

Financing: To be discussed.

Support & Training: 4 weeks at 20 hours per week.

Reason for Selling: Retirement. The Sellers are willing to comply with non-compete terms for 10 years and over a geographical area of 100 miles.

Detailed Information

Location:
North Hollywood, CA
Inventory:
Included in asking price
Employees:
11
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The entire building is approximately 30,000 sq. ft. The business leases a portion of the building to sub-tenants, so the effective rent is only $7,118 per month. This provides some flexibility for future expansion without relocation.
Competition:
There is competition from local providers, but top competitors have their own specialties and usually different customers, and this Company is differentiated because of their focus on quality, cost and delivery, as well as long term relationship with customers/suppliers. Also, the industry has high barrier to entry due to the high initial capital investment to meet equipment requirements.
Growth & Expansion:
Sellers are not savvy marketers. This becomes a growth/expansion opportunity if a new owner can increase marketing efforts overall and master online marketing opportunities as well as establish/grow social media platforms.
Financing:
If the price and deal structure is right.
Support & Training:
4 weeks at 20 hours per week.
Reason for Selling:
Retirement. The Sellers are willing to comply with non-compete terms for 10 year
Contact Seller

Contact the Seller

Contact Seller Loading

Tina Zeng, MBA

Business Listed By:
Tina Zeng

ProNova Partners

Show Phone Number

View My Listings

Listing Statistics

Unlock

Demographic Information

Unlock


Ad#:1635516 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's Terms of Use before responding to any ad.


Similar Listings


Checkers Drive In Restaurants, Inc.

Franchise Opportunity In CA
Cash Required: 250000