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Wayne County

  • Listing Number: 217-21253

    Category: Manufacturing

Asking Price $400,000
Gross Revenue $150,000
Total Adjusted Net Income $80,000
Equipment / Fixtures $200,000
Year Established 1989
General Location Wayne County
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The company manufactures parts for high performance automotive engines. Its international customers require higher quality threaded fasteners. All the engineering has been done over the years and the operation is primarily a manufacturing and fulfillment operation, The owner does all of this himself in 20 hours or less per week due to his limited ability to work longer hours. He does no selling or advertising and is continually working on back orders. This offer includes:

 

32 years of goodwill and brand recognition

All assets outlined on the asset list

Considerable excess production capacity

3 weeks of training included up to 20 hrs/wk

Ongoing guidance and support as needed

International customer base

Back-orders with six distributors

Performance based on no employees

Performance based on less than 20 hrs/wk by owner

Non-compete - owner retiring

Revenue trending back up

Past revenue was higher when the owner had employees, but the owner has chosen to run this as a one-man show with no employees for many years. The ideal Buyer will have or hire personnel capable of centerless grinding and operations support (thread rolling, part blanking, etc.). The owner estimates the current equipment is at 35% capacity, so a new owner could triple the business without adding equipment. Once at full capacity, the bottleneck is grinders. Smaller grinders could be added for $25,000 which would then double the capacity yet again. Current inventory at wholesale is ~$20,000. This does not include additional work in progress or raw materials (steel).

Opportunities for Growth

Hire staff: centerless grinder and operations support (thread rolling, part blacking, …)

Have parts on the shelf versus the current 6 month lead times

Develop a parts catalog online

Enable online ordering

Marketing & Sales Opportunities (once production is increased)

Update web site

Attend pertinent trade events

Evaluate opportunities for advertising

Evaluate opportunities to work with manufacturer’s reps

Highlight differentiation versus high volume competition

Optimize current customer mix of retail (~40%) and distributors (~60%)

Consider commercial customers at higher volume/lower margins



Gross Revenue
$150,000
Listed Price
$400,000
Total Income
$80,000
Square Feet
3200
Total Rent
$1,667
Lease Expiration
11/2022
Rent Deposit
$1,600
Inventory
Not Included
Equipment / Fixtures
$200,000
Training Period
3 weeks
Special License Required
none
Reason for Selling
retirement

The information contained herein was received from the Seller and is deemed reliable but not guaranteed. First Choice Business Brokers (FCBB), has relied upon the Seller to provide the above details and has NOT verified this information. FCBB is not responsible for and does NOT warrant any statements, projections or any information provided by the Seller. The User/Buyer will be solely responsible for verification of the Seller's profits and business operation. By acceptance of this document, the Buyer/User agrees that all information contained herein is strictly confidential and will not be disclosed to any other party without prior written authorization. The Buyer/User confirms and understands that FCBB has NOT performed an independent investigation of the business or figures quoted herein.

FCBB strongly recommends that a Buyer should seek legal and accounting advice prior to purchasing a Business. Any change to the above information requires both the Seller's and FCBB's written approval. Any change made to this document without FCBB and Seller approval is not valid.

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