Great as Stand-Alone, Roll-Up, or Add-On
Small machine shop doing specialized parts more than ten long term consistent and valuable customers, all of whom can be grown internally or cross sold additional services with more resources and staff.
$225K business price includes $20,000 of working capital in completed product for top customer, plus raw materials. Seller willing to carry $125K seller note with qualified buyer. In addition to $100K cash at closing, new owner will benefit from having an additional $20K working capital. Hire a replacement for the owner and this is still a 30% ROI on cash paid at closing, which will pay off seller note in 3 years. Take over the owner's role and then pay oneself $52K per year while paying off the seller note. This presumes cash flow in 2018 remains equal to 2017 where seller experienced 50% growth with number one customer who is telling this business to expect even further increases.
Parts Made, Customer Types & Equipment
Currently providing cylinder end-caps for industrial equipment manufacturer, assembly line machinery parts for consumer product manufacturer, modified bearings that self-align, bearings for agricultural harvesting and cutting equipment manufacturer, and sub-contract machining for major agricultural equipment manufacturer.
Lathes can turn 7" in diameter and up to 12" long. Mills can handle 3' x 54" table work.
HAAS VF-4 (1997), HAAS VF-5 (1999) both with rotary tables, 4 axis; Harrison M450 Engine Lathe(1990) & Tooling; Methods Slant 50 (1995) with Tooling. Various additional equipment,tools and fixtures. Full list available.
- High customer concentration, but it is long term, 4 years plus, and growing with largest customer. Over ten consistent customers are readily served by 1 FT machinist, and one part time owner-engineer-machinist, and his wife who does admin/billing work par-time.
- Seller owned 3500 sf building, not available as part of the sale, but will lease back to new owner for transition period.
Growth & Expansion
- Ideal for a roll-up of like minded smaller job shops to benefit from economies of scale and raw material buying power.
Support & Training
- Seller, who is semi-retiring to devote more time in his 60's to fishing and gun-smithing, will stay on as part-time consultant to new owner, assist with cross-training new owner staff where required, customer retention and business development.