Excellent opportunity to buy a manufacturing and precision machining business that has been operating for forty-five years.
Overview of the business for sale:
The manufacturing and precision machining business for sale specializes in computer numerical controlled machining, outside diameter and surface grinding. It provides services for a broad variety of industries such as automotive, defense, appliance, dairy, medical, dental, and various original equipment manufacturers. The client base consists mostly of local customers, however, this business also services customers across the United States.
The company was established in 1976 by the current owner. Over the years it grew to a national supplier of precision, close tolerance parts in a broad range of materials such as aluminum alloys, stainless steel, copper and brass, hot and cold rolled steels, titanium, ferritic, Inconel, and many other materials as well. The business for sale operates from an industrial facility that covers thirty-three square feet. It is fully equipped including more than fifty machinery assets. The sale includes both business and property. It represents an excellent opportunity for an individual buyer who is looking to enter the industry or for a strategic buyer who wants to add a substantial piece of property in fantastic condition and a large equipment base to their current operation.
Overview of the property:
The owner possesses the real estate and the industrial facility of 33,630 sq ft through a related real estate holding company with a partner. The property includes an exterior truck well, one grade-level door, forty-five parking spaces, and 1,800 amps of power. The premises were renovated during the last 5 years, and 3 rooftop Heating, Ventilation, & Air Conditioning units, new light-emitting diode lighting fixtures, and landscaping improvements were installed. The office also was renovated in this period of time.
Growth opportunities:
This business for sale has extensive potential for growth and expansion. The profits can be doubled or tripled if using the following strategies:
- Development of outsourcing partnerships with machine shops. Those projects that are not so successful, or do not fit the company’s specialty, can be outsourced. In this way, the company can achieve lots of advantages that will help improve their business and minimize operating costs at the same time.
- Utilizing of open capacity. At the moment the company utilizing only fifty percent of its facility and equipment. Increasing the capacity of the company which can be achieved by implementing a second shift will improve business.
- Adding a Salesforce and Marketing Strategy. It could allow attracting new clients and maintaining a strong relationship with an existing base. Keeping already existing customers is cheaper a lot than creating a new long-term client base and is the thing the company can capitalize on while gaining market share. Moreover, the website of the company was last updated eleven years ago With the modernization of it, the website traffic may increase, likely resulting in added business.
Reason for sale:
Now the owner is selling this business as he wants to retire after many years. A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish.
Additionally, owner financing is available. It should be noted that potential buyer is required to have a minimum of one million dollars in available liquid capital to be given information about this opportunity. Also, the business and real property will be sold together – not one or the other.
For more information about this opportunity, an interested party should sign a Non-Disclosure Agreement (NDA).
