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This small, nicely niched, very successful 25 year old light manufacturing Michigan business averages a whopping $300,000 of annual SDE (seller’s discretionary earnings – the normalized historical cash flow available to pay an owner/operator and service debt). The business generates more than $750,000 of annual revenues with just one well-paid, full-time employee and two part-time, contract employees (all of whom plan to remain with the company under new ownership). The business is housed in a well-located 1,350 square foot space (shop and office) in a multi-tenant industrial facility in a desirable Michigan city. There are renewable one year leases which comply with SBA lease requirements.

In 2017, the seller purchased a much larger, unrelated, out-of-state business, which has had remarkable growth since. And while he loves his “little” Michigan business, he cannot manage both operations so the Michigan business is being offered for sale. The seller’s high class problem could be your opportunity.

The owner works less than 10 hours weekly on this business which makes it an ideal acquisition for a buyer who does not want to leave his current position of employment. The business has three profit centers:
(1) rebuilding specialized machines for the woodworking industry;
(2) rebuilding specialized machines for the plastic injection molding industry, and
(3) specialty, contract laser work making metal parts which are included in products for the home furnishing and accessory industries.

Sales are generated throughout North America via word-of-mouth, lots of satisfied repeat customers, modest trade advertising, and an attractive and informative website There.is no customer concentration and accounts receivable have never been a problem.

This business is being offered for $1,033,000, a favorable 3.5x SDE. An expected asset sale includes all assets except cash and accounts receivable and has the seller retiring all liabilities at closing. The sale price includes $25,000 of inventory and $230,000 (cost basis) of fixed assets. And to help an energetic, but undercapitalized buyer purchase his business, the seller contemplates carrying a low six figure seller note.

To learn more about this attractive, unique business opportunity, please contact broker.

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