UNDER CONTRACT: Highly Profitable Machine Shop / Established Customers

Will County, IL

Seller Financing Available
UNDER CONTRACT: Highly Profitable Machine Shop / Established Customers
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Asking Price: Get Financing: N/A

Cash Flow: $379,213

Gross Revenue: $778,119

EBITDA: $259,213

FF&E: $227,650

Inventory: $4,000

Real Estate: N/A

Established: 1996

UNDER CONTRACT: Highly Profitable Machine Shop / Established Customers

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Business Description

In business for over 20 years, this highly profitable machine shop is poised for the next level of growth. This is an excellent opportunity to purchase a truly profitable, self-run, turn-key business with excellent employees, long-term customers, and high growth potential.

This is a business that can be run by anyone with general business experience, the ability to manage employees, and a desire to acquire basic knowledge of the industry. The owner will provide training along with effective marketing strategies he has used in the past to grow the business.

The company’s services include production and maintenance machining, OEM duplication, prototype creation, welding and fabrication, CNC milling and turning, laser cutting, CAD/CAM drawing services, metalwork, honing, polishing, and grinding. The company serves a variety of industries including the chemical, petroleum, plastics, and manufacturing industries.

The majority of the company’s customers (90%) are recurring and have been doing business with the company for over a decade. 95% of 2017 revenue consisted of repeat sales from the same customers going back at least 10 years. The top 3 customers have been with the company for over 20 years.

The company is currently running at very high profitability with an owner that’s working only 3-4 hours per week remotely! The owner relocated out of state and since then has been running the business from his home with occasional visits to the facility. With so much time available to a new owner to lead the business and increase sales, tremendous growth can be realized.

The owner does not engage in labor to generate revenue. The operations manager runs the day to day operation. All of the work is done by employees including sourcing inventory, quoting jobs, and doing the machining work. The owner handles minor administrative duties and holds weekly phone meetings with management to receive updates on the business.

This company’s success in retaining long-term customers stems from a philosophy of providing honest, timely service with high quality results. Taking care of their customers and being upfront about pricing and project timelines has led to a loyal and long-term customer following.

The owner is looking to sell due to retirement. However, he also believes that under new ownership, more attention can be placed on growing the business through increased marketing efforts. He would like to see the business he created many years ago continue to grow into the future and realize its full potential.

Further, the company has an estimated $228,000 in capital equipment that will allow for 3x sales growth from current revenue levels without the need for additional capital investments.

This business is also an ideal acquisition candidate for another company in the same (or similar) industry that is able to benefit from synergies through the purchase. This can be achieved by combining this company’s operations with an existing business that has excess warehouse space. Under this scenario, an additional boost of $90,000 in cashflow from rent savings can be realized! By delegating 3-4 hours of weekly office work to an existing administrative person, the new owner’s role can be solely dedicated to growing the business.

Company Highlights:

* Long-term and repeat customers. 95% of 2017 sales are from customers ordering consistently each year over the last 10 years.

* High profit margins with stable margin history.

* Potential for growth through a proven marketing method.

* Business is not based on personal owner relationships with customers.

* New owner can run it part-time if desired. Hours are flexible.

* Business is owner-independent. Employees generate the revenue and run daily operations.

* Turn-Key Operation.

* Strong employees, including an operations manager and lead machinist that run the business.

* Capital equipment available to generate three times the current revenue.

* Machine shop has a uniquely “clean” ambience and is very well maintained.

* Verifiable financials with above-average records. E-2 Shop System software has all historical job and revenue data to allow verification of the company’s sales history.

* Owner may be willing to finance a portion of the sale.

* Flexibility with facility options. You can purchase the real estate, lease it easily from the seller, or move the operations to another location. The choice is yours.

* Non-seasonal. The company is busy year round.

If you’ve been searching for a high quality business in a great industry, with excellent financial records, solid revenue and profits and with tremendous upside potential, this is the business for you.

Please complete and sign the confidentiality agreement attached below to receive further information. You may either fax it to 630-860-7775 or scan and email to hgonzalez@midwestvr.com. Please note that this is a requirement before further information is provided about this business.

Attached Documents


Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Building SF:
13,000
Employees:
5
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The facility space is approximately 13,000 sq. ft. The office space is 100 sq. ft.
Support & Training:
Owner will provide training for a reasonable time period after the sale.
Reason for Selling:
Retirement
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Hiram Gonzalez

Business Listed By:
Hiram Gonzalez

VR Business Brokers of Oak Brook

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Sponsoring Broker:
Dan Eitel


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