Impressive and Very Profitable Advanced Tooling Business

Contact: Tim Carter
Phone: 616-560-1080
Email: [email protected]
Your Reference ID: TC1101818

Description:

Operating for over 30 successful years, this high cash flowing tooling business is going stronger than ever. Now, the current owner seeks to transition this outstanding business to only the third owner in the company’s history.

Located in a desirable west Michigan community the business is housed in an attractive 8,000 square foot facility which is included in the purchase price. Recent upgrades to the facility include improved interior lighting and a remodeled break room. The building is situated on 2.5 acres so there is more than enough land to eventually expand the current structure for additional manufacturing space.

The business employs eight skilled, loyal, non-union tooling personnel and serves an impressive regional customer base. 2019 sales remain very strong with virtually no marketing effort. The company does not even have a website. Unsolicited calls from prospective new customers are a weekly occurrence – driven by word-of-mouth which reflects the company’s excellent reputation. And for the growth minded buyer the combination of (a) sales and marketing efforts, (b) adding a second shift, and (c) expanding beyond the company’s current market region could offer meaningful sales opportunities.

In 2018, the business recorded revenues of $1,287,000. Annualized SDE (normalized seller discretionary cash flow for an owner-operator to pay himself and service debt) has averaged over $500,000 the past three years. Machinery and equipment have a fair market value in place of $377,000 based on (a) a recent third-party appraisal and (b) the addition of new machines purchased in 2018. The real estate, also recently appraised, is valued at $335,000. The attractive $1,995,000 listing price is a very attractive 3.9x SDE and a jaw dropping 2.5x SDE for the enterprise value of the business. The contemplated asset sale includes all business assets excluding cash and receivables while the sellers will be responsible for retiring all liabilities.

To learn more about this attractive business and very profitable business opportunity, please contact Tim Carter (tcarter@praxisbusinessbrokers.com or 616-560-1080).

Location(s): West Michigan

Asking Price: $1,995,000
Cash Flow: $500,000
Gross: $1,300,000

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