San Joaquin County, CA Auto, Boat and Aircraft Manufacturers For Sale

Auto, Boat and AircraftCaliforniaSan Joaquin

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6Specialty ManufacturingExcellent, Profitable Manufacturer With Stellar 2017!
$1,350,000Cash Flow: $640,000
Specialty ManufacturingExcellent, Profitable Manufacturer With Stellar 2017!

San Joaquin County, CA

This specialty manufacturing company creates a racing automotive part and has 40+ years of business success in Northern California. Additional machine tools and automation capabilities have caused sales and profit margins to rise and seller’s discretionary earnings reached $565K + $75K on the building for a combined total of $640K in 2017! Management believes these improvements are sustainable and will only go up in 2018 due to being awarded a new product line plus the addition of key division of a Global Account! This company has a significant, many decades long loyal Fortune 500 customer in the automotive space and enjoys an ongoing strong connection with a specific division. Plus an American division of a Global Company has just approved the Seller to handle their healthy volume of work and continues to submit orders! Management believes that many other large customers in the automotive space, among other strategic possibilities, would make excellent customer candidates due to the esteemed reputation of this Seller's Business. This opportunity would be an ideal fit for a Buyer making specialty automotive parts and wanting to expand into highly profitable, massive accounts with an additional product offering. Another strategic and attractive choice would be a Buyer that manufacturers high performance automobiles to enjoy and accelerate economies of scale. A third excellent fit would be a contract manufacturer/machine shop accustomed to engineering design (CAD files) and working with high tolerance parts utilizing automated and programmable machine tools. Particularly one that is ready to get out of expensive metro areas with the associated long and exhausting commutes. In all scenarios, the ability to market, sell and grow the company’s renowned capabilities and expand the customer base would be the perfect approach to experience substantial growth.. Located outside of the gridlocked major cities in Northern California and yet conveniently near two Metropolitan areas, the labor force and cost of living are appreciably lower than what is seen in the Bay Area. There are nice neighborhoods, good schools, excellent medical facilities, convenient shopping, pleasant restaurants and wineries nearby. The owner has nicely positioned the business for sale by increasingly relying upon his trusted team and Warehouse supervisor who collectively do an excellent job with proven expertise in manufacturing these proprietary products. The team have very low turnover and are motivated to remain on board as they love the pleasant and productive working environment, this geography and the associated lower living costs. In the Bay area these employees could never enjoy home ownership and here they have been able to do so! The Owner is looking to retire after working with the new Buyer for up to two years as desired under mutually agreeable terms and the business is listed for $825K as an asset sale. Management owns an attractive, fairly new, nicely improved, well maintained and secure 14,900 SF building with ample additional capacity and parking available. The shop can easily handle more equipment and employees. The offices are beautiful for the owners, another spacious office for the team when working with CAD files and performing inspection and feature a well sized conference room. Building ownership would ensure on-going rent control and an excellent equity building asset. The building is reasonably priced at $1.35 M yielding a 6.5% cap rate. Integrate this business and building into your new and improved labor and overhead structure and immediately enjoy a nice improvement to your bottom line!


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