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Details

Jan 20, 2019The Company is a custom precision Computer Numerical Control (CNC) machining manufacturer. It uses computer systems to control the machine tools which includes both turning and milling various materials.

No prior industry knowledge required; fully operational standalone business and existing ownership is not involved in day-to-day operations.

• Over 20 years in business with long-standing customers, majority who have been with the Company for over 15 years
• Equipment valued at $1,000,000 based on two recent appraisals, utilizing technology for multi-palleted systems for lights out machining capabilities
• The prime location is a Western Canadian hub with access to many large private and public companies in the Vancouver area and access to U.S. customers directly across the border
• For any interested buyer, no previous knowledge of industry is necessary as company is a fully operational standalone business and existing ownership is not involved in day-to-day operations
• Experienced staff in place:
• VP running the operations including: quoting, purchasing, sales and scheduling
• Skilled shop foreman responsible for executing quality on time deliveries
• Machinists and operators running the equipment and handling the shipping/ receiving
• Accredited programmer proficient in Mastercam and SolidWorks writing programs for the machining
• ISO certification completed
• Fully integrated ERP system with bar codes and scanners allowing for efficient purchasing, quoting, invoicing, and job costing from the shop floor through to accounting
• Significant opportunity for growth as marketing has not been a focus due to long-term relationships with existing client base
• Client list includes several international and local companies
• Last few years have seen significant improvements with growing customers, investing in new equipment, integrating new ERP system, ISO certification and new website
• Solid company with a strong foundation for continued success:
• Experienced management in place
• Strong customer base of 15+ years
• Asset value of equipment $1,000,000 by two recent appraisals
• Free cash flow after all expenses of approximately $150,000-$200,000 per year


Valuation

75% of the Appraised Market Value ($1MM) of Equipment = $750,000
Free Cash Flow (EBITDA) of $150,000 X Multiple of 2.5 = $375,000
Total $1,100,000

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