Description

It has been a great 25 year run for the founder/owner of this outstanding CNC precision machining business; however, the seller now plans to retire or semi-retire and manage (in a reduced capacity)his company for its second owner. His decision could be your opportunity.

The business is located in a very attractive 13,000 square foot air conditioned facility in southeast Michigan. The building could be expanded to 27,000 on the current property. The real estate, worth an estimated $900,000, can be leased or purchased in a separate transaction. The company has 20 highly skilled, very dedicated, non-union employees working as machinists, engineers, quality and sales personnel. A growth minded buyer has the opportunity to add a second shift to the current single shift operation.

The business has several profit centers including: (1) manufacturing a variety of custom designed cutting tools; (2) customer designed tools (3) manufacture a variety of holding fixtures; (4) service tools for distributors and tool shops nationwide; and (5) tool reconditioning services.

The company maintains a bank of 5 axis CNC mills and live tool lathes, which are complimented by many other pieces of equipment, the combination of which allows the business to offer special services such as laser etching, and the like. New equipment is regularly added both to expand capabilities and increase capacity. Equipment expansion efforts to date have satisfied all current customers’ requests and needs. The company is ISO 9002 certified.

In 2015, the business recorded $673,000 of SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) on revenues of $2,445,000 million. The business is being offered for $2.49 million. The listing price includes an estimated $1,000,000+ (value in place) of machinery and equipment and approximately $325,000 of inventory, the price does not include the accounts receivables which typically runs about $250,000. The seller would prefer a stock sale rater than an asset sale. A meaningful seller note could be available for a qualified buyer.

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