CNC Machine Shop with Great Customer Base – SALE PENDING

Contact: Glen Toadvine
Phone: 7349299032
Email: [email protected]
Your Reference ID: GT1020719

Description:

It has been a great 12-year run for the founder/owner/seller of this attractive CNC business with a solid cash flow, but now at retirement age, the owner looks forward to transitioning his business to only its second owner/operator. The company has an outstanding customer base that reads like a Who’s Who in large, “brand name” corporations in heavy equipment and automotive industries, among others.

The primary processes used by the company’s seven non-union employees are lathes up to 10” in diameter and milled products. The company has six CNC lathes, five CNC Mills and related support equipment. The approximate value in place of the fixed assets (included in the sale) is $400,000.

The company’s business model is excellent and based on a continuous flow of work generated by customers’ weekly releases of regularly run products. Short runs and prototype parts are just a small component of the company’s business.

The business is located in south-central Michigan in a building nudging 10,000 square feet that sits on a 9.2-acre parcel. The real estate, owned by the seller, can be leased under favorable terms, or purchased in a separate transaction for $300,000.

Over the past several years, annual revenues have averaged over $800,000 with annual SDE (seller’s discretionary earnings – the cash flow available to pay an owner-operator and service debt over $220,000. In addition, the company’s gross margins have been impressive, ranging from 50% – 55%. For 2018, sales have increased 20% to $996,000 with greater than $225,000 of SDE.

The business is being offered for $670,000 with a meaningful seller note available for qualified buyers.

The business is being offered for $670,000 with a meaningful seller note available for qualified buyers. To learn more about this outstanding business opportunity, please contact Glen Toadvine (glen@praxisbusinessbrokers.com).

Location(s): South Central, South Central Michigan

Asking Price: $670,000
Cash Flow: $227,000
Gross: $996,000

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