SoCal Davenport Automatic Screw Machine Shop

Orange County, CA (Relocatable)

SoCal Davenport Automatic Screw Machine Shop
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Asking Price: $130,000

Cash Flow: $48,000

Gross Revenue: $99,000

EBITDA: N/A

FF&E: $88,600

Inventory: $2,000

Rent: $2,071 per Month

Established: 1977

SoCal Davenport Automatic Screw Machine Shop

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Business Description

One Person Machine Shop well suited to part time operator or Growth!

Financials maintained via QuickBooks.

This company has a long operating history serving both OEM customers, as well as other machine/metalworking shops. Seven, manual Davenport screw machines provide excellent flexibility to secure contracts for small parts with purchase order quantities of tens of thousands of pieces.

The financial data presented in this listing is comprised of weighted average performance for the past three years. A summary of the yearly performance is presented as follows:

2019: Revenue $88,000 Cash Flow (SDE) $39,000
2018: Revenue $105,000 Cash Flow (SDE) $58,000
2017: Revenue $104,000 Cash Flow (SDE) $52,000

The screw machines are well maintained and in excellent functional condition. The shop is tidy and all associated equipment and accessories such as cams, sprockets and collets are neatly organized. In addition to the Davenport machines, the company also owns a long list of equipment including surface grinders, mill, lathe, optical comparator, chop saw and vintage “Tow Motor” forklift.

California has the largest number of machine shops in the country. This business is structured ideally to continue to compete against other machine shops, a significant number of which employ 4 or less, for a share of the estimated $5B per year California machine shop revenues. The Company could continue to be operated as a standalone, or added to an existing machine shop platform.

The Company occupies 2,400 ft2 in an attractive, well maintained, business park. The current total monthly lease rate is $2,071 which includes a $168.00 CAM. The current lease expires May 31, 2020. This provides an good opportunity to either lock in a new multi-year lease, or move the business and equipment into another facility without lease termination negotiation.

Opportunities for growth include increased sales and marketing in both current industries served and other industries not currently marketed to which also currently have a need for machine shop services.

After over four decades of ownership and operation, the seller is looking forward to retirement.

Detailed Information

Location:
Orange County, CA
Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
2,400
Lease Expiration:
5/31/2020
Employees:
1
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The Company is a fully equipped machine shop. Equipment is notably comprised of seven (7) Davenport automatic, Model B screw machines, Logan lathe, Roxford mill, Darex drill grinder, Apex 8" x 20X optical comparator, 6000 "Tow Motor" forklift with propane conversion, assorted forms, drill cams, collets, feed gears, etc. The facility is efficiently laid out and neatly maintained. All equipment is in excellent working condition and small items - cams, gears, collets, repair parts are organized for easy indentification and access. Extensive job sheets document set up, production history and other notes made pertinent to part production.
Competition:
According to IBIS World, California has the largest percentage of machine shops in the nation, due to the state's diverse manufacturing sector. Smaller firms, such as this one, with one to four employees, comprise an estimated 46% of total shops. As such, the Company is positioned well to compete in the SoCal market.
Growth & Expansion:
The California machine shop industry is estimated by IBIS World at approximate annual revenues of $5 Billion, comprised of many smaller shops, with an extremely low concentration of annual revenue produced by the largest shops. The owner has not developed or executed a marketing or sales presence or campaign. Growth potential exists via an energetic sales effort.
Support & Training:
Seller will provide two weeks of training at approximately 35 hours per week after close of escrow. This training will be comprised of providing familiarity with customers and vendors, currently utilized quotation process, general location of and familiarization with equipment, supplies, etc. The training will not include sufficient instruction to "teach" someone unfamiliar with the art how to operate the Davenport screw machines.
Reason for Selling:
Owner is retiring after a long career in the machining industry.
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Edward Anderson

Business Listed By:
Edward E Anderson

Sunbelt Business Brokers of Los Angeles/Whittier/Fullerton


Sponsoring Broker:
John J Moser

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