It has been a great 20 year run for the owner of this very successful, specialized steel fabrication business, but having reached retirement age, he has decided to transition his solid and profitable business to only its second generation of owner-operators. His decision could be your opportunity.

Located in 55,000 square feet of a late model 70,000 square foot building in an attractive industrial park in a desirable and growing West Michigan city, the business has owned and occupied this squeaky clean facility (which includes as a bonus, lots of office space) for the past 18 years. The facility can be can be leased from the seller under favorable terms or purchased outright in a separate transaction.

The single shift operation employs 28 loyal, well-paid, skilled, non-union personnel. The company runs 4-10 hour shifts which results in a solid, life-style bonus for the employees. And with lots of floor space and manufacturing time available in the large plant, there is ample opportunity for a new owner to grow the business.

The equipment included in the sale is both extensive and in excellent condition. A 2024 “fair market value” professional equipment appraisal from Miedema Appraisals itemizes $2.0(+) million of machinery and equipment, all of which will be included in the sale. Six figures of 2025 capex purchases will also be included in the transaction. The Company’s specialized machinery combines with its superior technology to capably serve customers from a variety of desirable, non-automotive industries. There is neither industry nor customer concentration.

Over the past four years, this impressive business has averaged $6.1 million in annual revenues (from a combination of domestic and international sales) while recording an average annual EBITDA exceeding $600,000. Imputing a 1.75x multiple to EBITDA results in an enterprise value of $1.1 million which when added to the included $2.0(+) million of machinery and equipment and $900,000 of cost basis current inventory results in a favorable $4.0 million listing price. Additionally, the seller will carry a generous $1.0 million seller note for a qualified buyer and offer transition training to meet the buyer’s needs and expectations.

The seller envisions a cash free, debt free asset sale in which he retains cash and A/R while retiring all debt and current liabilities. The buyer will receive all inventory, all machinery and equipment, and of course the enterprise value/goodwill of the business. All corporate liabilities will be retired by the seller at or before closing.

The proposed deal structure (pricing and terms) reflects an average 1.49x debt coverage ratio for three of the most recent four years. And during the same three years, the business has generated an average annual post debt service impressive cash flow of $238,000 for the owner/seller.