Welding and Fabrication Business

Contact: Tim Carter
Phone: 616-560-1080
Email: [email protected]
Your Reference ID: TC1052617

Description:

The owner of this decades old Mid-Michigan welding business provides welding and fabrication services to a wide variety of clients. Now approaching retirement the owner is ready to transition his company to the next generation of owners. 

The company has a large and diverse customer base and is the “go to” option in the region for all types of welding needs with a specialty in difficult welding repairs. The business employs ten people including eight experienced, non-union skilled tradesmen. The business operates out of a 10,000 square foot facility. The real estate (owned by the seller) is ideally suited for the business with high ceilings, thick floors, multiple work bays, overhead cranes and ample grounds. The buyer can expect a lease with attractive terms. 

Annual revenues have averaged $1,350,000 over the last three years. In 2016 SDE (normalized discretionary earnings for an owner-operator to pay himself and service debt) was $265,000. The seller anticipates an asset sale which will include all fixed assets with an estimated value in place of $300,000.

The listing price for the business is an attractive $695,000 which is less than 2.7x SDE. The seller will retire all liabilities and will retain cash and accounts receivable. Inventory of approximately $70,000 must be purchased separately. Additionally, the seller will carry a six figure seller note for a financially qualified buyer.

For more information on this attractive business opportunity, please contact Tim Carter (tcarter@praxisbusinessbrokers.com or 616-560-1080).

Location(s): Mid Michigan

Asking Price: $695,000
Cash Flow: $265,000
Gross: $1,350,000
Inventory: $70,000

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