Welding and Steel Fabrication Manufacturer

CA (Relocatable)

Seller Financing Available
Welding and Steel Fabrication Manufacturer
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Asking Price: $400,000

Cash Flow: $233,000

Gross Revenue: $700,000

EBITDA: N/A

FF&E: $216,500

Inventory: $50,000*

Rent: $5,200 per Month

Established: 1974

*not included in asking price.

Welding and Steel Fabrication Manufacturer

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Business Description

This enterprise has a 46 year history under two ownerships of quality workmanship, designing and fabricating steel products for a niche market. The Company has roughly 150 stock items. Custom and special orders historically comprise 60% of overall sales volume.

The Company's primary focus is the farm and equine economy with the manufacture of stock and custom designed product including covered corrals, shelters and barns, stall doors and grilles, stall fronts, cattle guards and smaller items such as bridle racks saddle racks and other barn accessories.

The experienced staff is overseen by a production manager who has been with the Company for fifteen years. The semi-absentee owner is on site for ten hours per week, dealing with job scheduling and design work.

This opportunity is completely turnkey: the shop is fully equipped including vertical cutting saw and conveyor, hydraulic bender, hydraulic ironworker, portable A Frame, 3 forklifts and 2017 International Truck with hydraulic dump flatbed.

Average past 5 year Revenue of $700k and Discretionary Earnings before owner compensation of $233k per annum. Excellent lease currently equates to 8% of revenues. Gross profit margin before expenses is 65%. Net profit before owner compensation is 35%.

There are outstanding opportunities for growth. Perhaps most compelling is an agreement to provide manufactured product in the amount of $180,000 annually for a minimum of three years to a nearby Farm Supply Retailer, which represents the first of potentially 22 other retail locations. These terms are transferable to a new owner.

This enterprise is an excellent opportunity for an individual with design, fabrication and management skills who "wants to be his own boss" or for a company that wants to add growth to its portfolio through acquisition.

This industry has experienced no disruption from the effects of Covid -19 and in fact similar to the home improvement sector, demand for new installations, fencing projects and farm/equine improvements has been robust.

Retirement is the reason for the sale.

A comprehensive Confidential Business Review is available upon request and completion of a signed Non Disclosure Agreement and Buyer Questionnaire/Profile.

Detailed Information

Inventory:
Not included in asking price
Real Estate:
Leased
Building SF:
7,000
Lease Expiration:
2/29/2024
Employees:
5
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Facility is 6831 square feet under roof with full office, production area. Storage yard and off street parking. Five minute access to major freeway. Lease expires end of Feburary, 2024. Excellent landlord.
Competition:
National chain lacks depth of product offering and no custom fabrication. Local manufacturer also general contracts metal and fence building, unlike this Company which elects to not compete with its contractor client. Quality of workmanship and depth of product line is unsurpassed.
Growth & Expansion:
The seller foresees growth opportunities derived from several new and existing sources: 1. Internet sales is still in its nascent stage of development. Absent any investment in SEO, its growth has been strictly organic up to this point. 2. Expand the outreach of the current product line to retailers outside of the immediate trade area. 3. Grow the current line of custom product. 4. Expand current agreement with multi-state farm supply retailer to include some or al of twenty two other locations. .
Support & Training:
Owner will provide training for 4 weeks at 20 hours per week to assist in a successful transition of ownership.
Reason for Selling:
Family health.
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Don Ross

Business Listed By:
Don Ross

Exit Strategies Group, Inc.


Sponsoring Broker:
Al Statz

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