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.
To get more information about this Industrial Motor Pump Manufacturer Repair business for sale in
San Francisco Bay Area please phone Tim Cunha (Intermediary, Broker - BRE License #:01919755) at 650-600-3751 and 844-237-6487 - if you get
voicemail please leave a detailed message - make sure you mention you
saw this posting/ad #250564 on BizBen.com. In addition to phoning
Tim Cunha, make sure you email Tim Cunha above to get more info about this
Industrial Motor Pump Manufacturer Repair, to ask any questions or request an appointment to see this
business for sale. Thank you.
Related Links And Information Regarding This Posting
Through creative problem solving, attention to detail, accessibility, & understanding that unnecessary delay is often a deal killer, I work closely with my clients and other professionals to consistently achieve a high rate of successful closings. Office: 909-255-8353, Cell: 509-951-7230.
Founder & President Of BizBen.com (since 1994). I am the Lead Facilitator for both the ProSell & ProBuy Programs. I consult daily with business buyers, business owner/sellers, and brokers and agents daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
20 years experience of local governmental requirements, such as Police Departments, Zoning / Planning Departments, and ABC District Offices, my company Liquor Licenses of SF Bay Area is very qualified to resolve all of your concerns during the liquor license transfer process. Call 925-787-0770.
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
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