Contact: Steve Kandt
Email: [email protected]
Your Reference ID: SK1042318
It has been a great 28 year run for the founder-owner-seller of this very impressive, successful and high cash flowing precision testing business; but now the seller looks forward to retiring after transitioning his business to only its second owner.
Located in three, adjacent, attractive late model buildings (all owned by the seller – a total of 34,000 sf) in a desirable community in SE Michigan, this state-of-the-art, accredited (ISO/IEC17025) testing facility has average annual sales approximating $6.0 million with just 22 skilled, full-time, non-union employees. For 2018, revenues are tracking $6.3 million with expectations of an impressive $2.5 million in EBITDA, a 25% increase over the $2.0 million of EBITDA averaged each of the past three years.
The business has an estimated $2.0 million (value in place) of sophisticated testing equipment either commercially manufactured and/or custom designed and built by company engineers. The equipment efficiently handles testing assignments ranging from “A to V,” automotive fluids to vibration and everything in between. The company also has both dedicated testing chambers and sealed testing rooms to simulate whatever environments the customer needs for specific tests. Many of the testing assignments run (literally) for one year or more in a “lights out” environment. This niche business has redefined the term “barriers to entry.” The longevity of the business coupled with its reliability, fast response, and flexibility has made this company the “go to” testing source for OEM’s and more than 100 tier one and tier two customers in a myriad of industries ranging from automotive to aviation to pharmaceuticals/medical to general manufacturing.
The seller envisions a sale which, in addition to the enterprise value of the business, includes the above-mentioned $2.0 million of equipment plus low seven figures of a combination of WIP and physical inventory. The seller intends to retire all liabilities while retaining cash and A/R after leaving an adequate amount of working capital for the newco. In addition, a seven-figure seller note will be available for a qualified buyer, and the seller will accommodate his post-close plans (weeks, months, or a few years) to meet the successful buyer’s needs.
With (1) the combination of hard assets, WIP and inventory exceeding $3.0 million; (2) EBITDA exceeding $2.0 million annually; (3) six figures of included working capital; and (4) a seven-figure seller note, this business is being offered at a competitive EBITDA multiple which should be attractive to buyers and bankers alike.
For more information about this outstanding business opportunity, please contact Steve Kandt (firstname.lastname@example.org).
Location(s): Metro Detroit
Cash Flow: 2,000,000