For Sale: Industrial Motor Pump Manufacturer Repair - San Francisco Bay Area

Description About This Posting: Industrial Motor Pump Manufacturer Repair

Located in the Silicon Valley vicinity of the San Francisco Bay Area, this business repairs, services, distributes, and manufactures electric motors, pumps, and related products and replacement parts, serving northern California for five decades.

The business is profitable and highly-respected, serving hundreds of regular recurring industrial and governmental customers, with over 1,000 customers in the database.

The staff has many decades of experience and expertise. The principal owner/CEO of the business is available for a smooth and orderly transition for several months or more, at the option of the new owner. The employees and managers do not know that a sale is contemplated, and the seller has every reason to believe that all would stay on at the new owner's option. The owner-manager works approximately three days per week and is open to staying on for a structured transition.

They operate from a leased 6,000+/- sq ft building with another 1,000 sq. ft. outside, plus parking. Total rent is $6,800 plus CAM-NNN of about $550. The lease has another five years to run, with a landlord interested in long-term tenants.
Services include repair, rewinding, and rebalancing, and rebuilding of motors and pumps up to 1000 HP. Scores of prominent product lines are offered (to be disclosed on signing an NDA).

The owners of this business want to keep the potential sale highly confidential. They are willing to share complete financial data for several years tax returns, bank statements, P&L, balance sheet, customer records, etc. but only after obtaining an NDA and basic evidence of financial resources from a prospective buyer, engaging in a discussion with the seller and the broker, and the buyer showing positive evidence of serious interest in an acquisition.

Gross Sales Revenues: 2018, $1,325,852; 2017, $1,846,980; 2016, $1,727,517; 2015, $1,375,351; Jan-March 2018 (Q1), $344,060; Jan-March 2019 (Q1), $506,448, a 47.2% year-over-year increase. While 2018 sales were uncustomarily low, based on current trends and pending projects, management is confident that 2019 sales will exceed $1,900,000. Policies were recently implemented to change contract pricing procedures to increase gross revenues by about 7% and net profit by over 30%.

Seller's Discretionary Earnings ('SDE') for one owner-operator are estimated to be $380,000 (about 20% of gross). During 2018, some changes were made in sales operations and distributorships, which may affect the actual SDE for 2018. The actual SDE for 2018 will be calculated based on the 2018 P&L and tax return.

The Transaction: The business is offered for total price of $1,795,000 (approximately 1x annual sales). This is for the entire business tangible assets, e.g. equipment, machinery, furniture, fixtures, etc.; and intangible assets, e.g. website, trademark, logo, trade name, telephone number, methods of operation, vendor/supplier resources, customer lists, etc.; and good will. It does not include cash, accounts payable, accounts receivable, or corporate entity. Inventory (approx. $20,000) is extra at actual cost. Some seller financing may be available for a qualified buyer with adequate collateral. The business should be qualified for SBA financing.

Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.

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