Yes, you are reading this correctly. The owner is motivated to sell this and move on into retirement, and is offering the high value assets of equipment and inventory at substantially less than the asking price. The buyer must also acquire the property which is priced at or near market value at $900,000.

This business has been around for decades and is a fully integrated industrial engine repair and service facility, that also stocks 1000’s of parts for numerous brands and models to utilize in their remanufacturing process or to have ready to sell to customers. They specialize in natural gas engine and pump repair, and they provide quality remanufacturing and service on pumps and compressors, as well as maintenance service. Their customers are mainly based in the U.S. and Canada.

There is a massive amount of equipment, inventory, rolling stock, and parts included, and collectively the FMV of the equipment and rolling stock and the cost value of the inventory / parts is estimated to be around $1 million, with a gross sales value of about $2 million.

The property consists of a shop around 9,000+ sq. ft. with 5 acres of property, and the facility is well-equipped with 480V electrical service, fully piped with compressed air service, multiple large bay doors, and a 10T crane with dual remote operated hoists. The estimated appraised value of the real property is $900,000.

The owner is offering the business at a price significantly below the fair market value of the equipment and inventory and is anticipating selling the real property along with the business.

The owner has put little to no effort into growing the business, market the business, cultivate customers, or advertise for several years, and that is a great enhancement opportunity alone. Their revenues year to year are from call-in orders, or inquiries through their website. As such, sales are only a fraction of what they have been years back, or what they could be currently, and the business generates insufficient net income for a buyer to obtain cash-flow based financing on the business part of the transaction (but financing may be possible based on the assets and their collective value). 2023 revenue was about $600,000 with cash flow (SDE) of about $85,000.

The ideal buyer is expected to be an existing industrial engine company seeking to expand with new customers or physical space, or a compressor or industrial equipment repair business, or a compression company that utilizes natural gas engines in their fleet of compressors. There are other strong potential suitors as well.

From an asset point of view, this is an excellent opportunity for the right buyer! If you would like to discuss this opportunity, please send us an inquiry and we will send you an NDA to return, followed by a conversation to see if there is a mutual fit.