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Details - Information last confirmed on July 12, 2021
Located in the Silicon Valley vicinity of the San Francisco Bay Area, this business repairs, services, distributes, and manufactures electric motors, pumps, and related products and replacement parts, serving northern California for five decades.
The business is profitable and highly-respected, serving hundreds of regular recurring industrial and governmental customers, with over 1,000 customers in the database. One of the many intangible but valuable assets is the very favorable market exposure to several hundreds of loyal, highly-satisfied commercial and industrial customers who would be premier prospects for additional products and services.
The staff has many decades of experience and expertise. The principal owner/CEO of the business is available for a smooth and orderly transition for several months or more, at the option of the new owner. The employees and managers do not know that a sale is contemplated, and the seller has every reason to believe that all would stay on at the new owner's option. The owner-manager works approximately three days per week and is open to staying on for a structured transition, short- or long-term.
The business operates from a leased 6,000+/- sq ft building with another 1,000 sq. ft. outside, plus parking. Total rent is $9,900 plus CAM-NNN of about $550. The lease has another two years to run, with a landlord interested in long-term tenants.
Services include repair, rewinding, and rebalancing, and rebuilding of motors and pumps up to 1000 HP. Scores of prominent product lines are offered (to be disclosed on signing an NDA).
The owners of this business want to keep the potential sale highly confidential. They are willing to share complete financial data for several years tax returns, bank statements, P&L, balance sheet, customer records, etc. but only after obtaining an NDA and basic evidence of financial resources from a prospective buyer, engaging in a discussion with the seller and the broker, and the buyer showing positive evidence of serious interest in an acquisition.
Gross Sales Revenues: 2019 — $1,716,675 (29.5% increase over 2018); 2018 — $1,325,852; 2017 — $1,846,980; 2016 — $1,727,517. While 2018 sales were uncustomarily low, 2019 recovered with the resumption of on-the-road sales representation. In late 2019, policies were implemented to change contract pricing procedures to increase gross revenues on same-customer sales by about 7% and net profit by over 30%.
Seller's Discretionary Earning ('SDE') for one owner-operator was calculated by the Seller to be about $265,000; the SDE is earned by the owner-operator while working 60% of full-time.
The Transaction: The business is offered for a total asking price of $1,200,000, subject to negotiation and terms. This is for the entire business: tangible assets, e.g. equipment, machinery, furniture, fixtures, etc.; and intangible assets, e.g. website, trademark, logo, trade name, telephone number, methods of operation, vendor/supplier resources, customer lists, etc.; and goodwill. It does not include cash, accounts payable, accounts receivable, or corporate entity. Inventory (approx. $20,000-$30,000) is extra at actual cost. Some seller financing may be available for a qualified buyer with adequate collateral. The business should be qualified for SBA financing.
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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.