Small niche manufacturing company
Business Description
The owner has worked 20 hours or less per week for many years now. A new owner would need to be an operator to make this financially viable. Training is limited to 10-2 M-F due to owner's situation. There has been conisderable intrest in this business and many Buyers have tried createive deal structures .However, the owner requres a minimum of $250K at closing in order to proceed.
The company manufactures parts for high performance automotive engines. Its international customers require higher quality threaded fasteners. All the engineering has been done over the years and the operation is primarily a manufacturing and fulfillment operation. At its peak, revenue was near $200K and SDE near $100K. The owner does all of this himself in 20 hours or less per week due to his limited ability to work longer hours. Recent financial performance has declined due to health, but per the owner, customers will come back as they are hobbyists willing to pay for his premium parts. He does no selling or advertising and is continually working on back orders. This offer includes:
• 32 years of goodwill and brand recognition
• All assets outlined on the asset list
• Considerable excess production capacity
• 2 weeks of training included up to 20 hrs/wk
• Ongoing guidance and support as needed
• International customer base
• Back-orders
• Performance based on zero employees
• Performance based on less than 20 hrs/wk by owner
• Non-compete - owner retiring
Past revenue was higher when the owner had employees, but the owner has chosen to run this as a one-man show with no employees for many years. The ideal Buyer will have or hire personnel capable of centerless grinding and operations support (thread rolling, part blanking, etc.). The current equipment is well under capacity, so a new owner could triple the business or more without adding equipment. Once at full capacity, the bottleneck is grinders. Smaller grinders could be added for $25,000 which would then double the capacity yet again.
Opportunities for Growth
• Hire staff: centerless grinder and operations support (thread rolling, part blacking, …)
• Have parts on the shelf versus the current 6 month lead times
• Develop a parts catalog online
• Enable online ordering
Marketing & Sales Opportunities (once production is increased)
• Update web site
• Attend pertinent trade events
• Evaluate opportunities for advertising
• Evaluate opportunities to work with manufacturer’s reps
• Highlight quality differentiators versus high volume competition
• Optimize current customer mix of retail (~40%) and distributors (~60%)
• Consider commercial customers at higher volume/lower margins
The company manufactures parts for high performance automotive engines. Its international customers require higher quality threaded fasteners. All the engineering has been done over the years and the operation is primarily a manufacturing and fulfillment operation. At its peak, revenue was near $200K and SDE near $100K. The owner does all of this himself in 20 hours or less per week due to his limited ability to work longer hours. Recent financial performance has declined due to health, but per the owner, customers will come back as they are hobbyists willing to pay for his premium parts. He does no selling or advertising and is continually working on back orders. This offer includes:
• 32 years of goodwill and brand recognition
• All assets outlined on the asset list
• Considerable excess production capacity
• 2 weeks of training included up to 20 hrs/wk
• Ongoing guidance and support as needed
• International customer base
• Back-orders
• Performance based on zero employees
• Performance based on less than 20 hrs/wk by owner
• Non-compete - owner retiring
Past revenue was higher when the owner had employees, but the owner has chosen to run this as a one-man show with no employees for many years. The ideal Buyer will have or hire personnel capable of centerless grinding and operations support (thread rolling, part blanking, etc.). The current equipment is well under capacity, so a new owner could triple the business or more without adding equipment. Once at full capacity, the bottleneck is grinders. Smaller grinders could be added for $25,000 which would then double the capacity yet again.
Opportunities for Growth
• Hire staff: centerless grinder and operations support (thread rolling, part blacking, …)
• Have parts on the shelf versus the current 6 month lead times
• Develop a parts catalog online
• Enable online ordering
Marketing & Sales Opportunities (once production is increased)
• Update web site
• Attend pertinent trade events
• Evaluate opportunities for advertising
• Evaluate opportunities to work with manufacturer’s reps
• Highlight quality differentiators versus high volume competition
• Optimize current customer mix of retail (~40%) and distributors (~60%)
• Consider commercial customers at higher volume/lower margins
About the Business
- Years in Operation
- 36
- Employees
- 0
- Currently Relocatable
- Yes
- Market Outlook / Competition
- A large competitor cannot meet demand. The industry in general has a supply issue.
- Opportunities for Growth
- We have new companies in the U.S. and Europe that have requested to become distributors and we have advised them that we can’t meet demand for our existing distributors so we are not accepting any new distributors at this time. We have a company in Europe that wants us to manufacture custom studs for their use.
Real Estate
- Owned or Leased
- Leased
- Building Sq. Ft.
- 3,200
- Rent
- $1,667.00 per month
About the Sale
- Seller Motivation
- retirement
Listing Info
- ID
- 1935312
- Listing Views
- 5984
Listing ID: 1935312 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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