Please Submit Our NDA To Begin A Dialog. (NDA link on top of page). Send to: as a PDF attachment. NDA has e-mail address.
You should be versed in the operation of a business & its employees. If you have questions please be specific. Not too much has been left to chance in this ad (a double edged sword, no doubt). We are retiring and the business will continue to grow with your imagination and ingenuity! Here's our financing offer (minus the small print):
Sale Price: $350K
Down Payment: $250K ($100K of which will go back into the business as our [in]vested interest). The vested interest will be used only to grow the business and with us having equal say on how it's spent (protecting our interest so to speak).
Balance: $100K payable over 60-equal payments of $1700/month.
Vested Interest repayment based on a 3% commission of gross sales.
Example: Gross sales of $40K = $1200 commission payment. And monthly.
We act as sales representatives (reps) until the $100K is paid.
This is our commitment to convince the you that we are a part of making your investment a successful one.
This 'Small Business' is a metal finishing service vendor offering an array of finishes, including plating, anodizing and painting, to an industrial & consumer [wholesale] market. The business model to be further discussed.
Among the industries served are, tooling, precision components, medical, automation, entertainment, automobile restorations and firearms. The possibilities are endless, however. The company has grown with the philosophy of improving upon what the customers/prospects have a need for and by offering a we'll-take-care-of-it attitude . The Company offers a new owner an established reputation as a metal finishing provider with a strong work ethic and which has an experienced and trained staff, a system of procedures and checklists and a business model that has been proven successful many times over. The Company is readily poised to service a larger and broader base of customers. While staying with its "low volume" model. The current owners are not in that frame of mind, however.
The 36-years of business history and the revenue/earnings record speaks to the viability of the company. The company is regulated & licensed. And a new [asset or stock] owner may require permitting by several government agencies, including: BATFE; SCAQMD; OCSD; and the AFD. All currently in the Corporation's name.
The buyer first and foremost must be in a financially viable state for operating a small business. And with a business plan that allows for a 1-3 month transition period in terms of cash flow. The buyer's experience should be grounded in management with a technical understanding of the manufacturing world. The training the buyer will receive will be dedicated to the nuances of our business model. 'You' must know how to run a business!
Description of Company:
The Company is formed as an S-corporation. The only stock holders, husband & wife, are set for retirement. The company was founded by the husband in December of 1979 and remains in the same location. From Anodizing to Zinc and the myriad of processes in between the Company always has the option of what market to address based on sales and/or seasonal trends; and is not limited in that regard. This gives rise to a huge potential for growth. Furthermore this has defined the Company as a one-stop shop for metal finishing with much of its customer base.
Offering Price and Terms: $350K (negotiable).
The preferred method for transacting the sale of the Company is a stock sale. This preserves the status quo and the transition, for all intents & purposes, is seamless. All business & legal associations continue with the corporation. And although some disclosures may be mandatory the perception that the Company continues will be predominant. And to that end the Company is fully insured. An asset sale, too, is a viable alternative. The sale price is $350K. This is based on a 2X earnings multiple. A very conservative price based on a tremendous historical average. And the terms of payment are negotiable; with the owners willing to finance per the outline above. In addition the owners are willing to help with the transition for a period of up to 1-month included in the price. Longer and up to 3-months on a contract consulting basis is also negotiable. This contract to be negotiated on its own merits and may be part of the purchase agreement.
About the Industry, Products and Customers:
There is no one industry that is predominant in the Company's market. And for that reason all industries are fair game for both the existing business model and any modification by new owners. The Company's customer base extends from military contracts (CAGE Code in place) to consumers looking to restore a personal heirloom, and most things in between. The choice of which market to serve falls on the board of directors and as such are the stock holders. The certain traits of any market that have caused the Company to excel are the need for quality and timeliness. The short-lived bliss of the low prices by some competitors quickly sours when quality fails and deliveries don't happen. Conversely for this protocol to succeed no one rests on their laurels.
Personnel and Management:
On average the Company has 7 employees. This includes the 2 stockholders who act as the general manager & controller. Of the 6 which are not stockholders 1 is a shop supervisor / expediter; 3 are department leads: quality control, processing, shipping & receiving & clerical. Then there is a driver & shop helper. All 6 are involved in the every day tasks for meeting the production requirements. All employees enjoy the benefit of health insurance paid by the Company as well as a 3% match on a SIMPLE IRA (Savings Incentive Match PLan for Employees) retirement plan. Paid sick leave, paid vacation & paid holidays are all part of the benefits' package.
The Company currently leases 5-units and a total of 7000 sq.ft., joined by substantial openings in the common shop walls and door openings in the office area. Included are approx 2000 sq.ft. of office, including 6-bathrooms, employee lunch room, executive offices, conference room & document storage space. The rest is dedicated to machinery & production space. The complete area is wired & monitored by a security service. All lighting has been converted to T8 fluorescent. The current lease runs until 2020.
A list of all the Company assets that are included in the purchase is a separate document and will be incorporated into the purchase agreement. All equipment is maintained either by Company personnel or third party maintenance services and are represented to be in working condition. The major component assets are: vehicles, rectifiers, furniture, processing machines. Some machines, as of this writing (July 2016), are new or less than a year old. Your due diligence will show that the total value of the fixed assets is in the order of $100K. Plus the value of the extensive website & of course the good will. At least two assets that will not be included are the company airplane & a certain 2013 F-150 Ford truck.
The Company is on a flat trajectory mainly due to the owners' necessity to slow up. Growth & plans for growth continue, albeit at a slow pace. The new owner, with new owner's ambition, will have no trouble ramping up the trajectory. Sales of $1M plus are by far not out of the question. 2013 & 2014, which exceeded the million-in-sales threshold demonstrate that quite clearly. With not too much effort sales growth of 10% per year are the least that will be accomplished under the new owner's leadership. And I am ready to work as a consultant for up to 3-months. And train individuals in the process.
Four years of financial statements indicate without a doubt what the Company can do and how much money the owner can take home. This is the incentive for any businessman. As this is not considered a seasonal business, for reasons mentioned above, there are no quarterly trends that need to be identified. The recast figures in the financials are an indication of how much of the expenses can be figured into the owners benefit. Retained earnings & the fact that the company has no long term debt is the result of a controlled cash flow and detailed attention given to paying the bills & not being overextended. A very conservative approach and a key component of the Company's business model. The balance sheet will tell this story.
The New Owner:
A burning desire to make things happen. This business will give you the opportunity to innovate, build & develop any technique that you believe in. And without asking your 'boss' for permission. As a plus, you may have some technical knowledge of the manufacturing world and at least a modicum of understanding of some of the disciplines therein. Our $100K investment will give you the boost without the sacrifice.
Available after submitting CDA: Assets' List, Financials & Balance Sheet, and answers to your questions.