Contact: Greg Carpenter At 408-898-0393 , 408-444-7528 - Also Email This Contact Below
Asking Price: Call / Email Down Payment: Call / Email
Annual SDC: $2,256,175
Annual Gross: $3,814,8982
Business Address: None Given City: San Jose Zip: None Given
Attributes: Broker-Broker Coop, Semi-Absentee Run, Training & Support, Relocatable, Real Estate Available
Company is a contract manufacturing service company that provides high quality precision parts and assembly services for original equipment manufacturers. The company was founded in 2004 and acquired by the current owner in 2015. Company has served over 100 customers in manufacturing the highest quality parts and assemblies to their customers.
COMPANY provides solutions in the following categories:
* Production runs of low volume, high mix parts for OEMs, blanket orders with scheduled releases
* Quick-turn prototyped machining and assembly resources
* Precision manufacturing from simple to complex parts with tight tolerance specifications
* High quality, machined parts made from various materials that include stainless steel, copper, aluminum, titanium, tungsten, nickel industrial plastics and other materials
COMPANY serves a diverse group of industries:
* Semiconductors this industry represents about 80% of sales
* Robotics and Automotive
* Optical and X-ray devices
COMPANY can produce runs as small as 1 parts (prototype) or 10 parts to thousands of parts. Average lead time is 4-12 weeks. The company provides a Certificate of Performance on each product/service they deliver. First Article Inspection Reports (FAI), Material Test Reports (MTR), RoHS compliance, plating certificates and CMM Reports are available as well upon request.
Sales revenues consist of the following:
Precision Machining (Milling) 50%
Precision Machining (Turning) 35%
Mechanical/Turnkey Assembly 15%
Services such as EDM (Electrical Discharge Machining), gun drilling, painting, and plating are sub-contracted to outside vendors.
Total number of clients in the database are several hundred. 29 are currently active.
Most revenue is derived from semiconductor original equipment manufacturers (oem). 67% of 2019 sales were generated by two clients, both in the semiconductor industry. Third largest customer is an oem of medical equipment.
New business is generated through referrals and direct sales. The company has its own dedicated website. The company would greatly benefit from the addition of an outside salesperson.
There are 10 full-time employees, 1 part-time employee and 1 contractor. Benefits are health and dental insurance for which the company pays 70% of the premiums. Six employees have chosen to use the health & dental insurance program. There is also accrued vacation and six paid holidays. There are no employee contracts. The employees are experienced and skilled machinists who can fabricate complex components at a low cost.
The company can accommodate rapid prototyping manufacturing (rpm) needs for customers. The assembly teams are extremely proficient at streamlining the production of parts, components and systems to ensure production, time and cost efficiencies.
The company facility is in a 5,261 square foot building. Base rent is $7,892 per month plus $1,841 in cam charges. The lease is currently month to month and the landlord is offering a new 5-year lease at $1.50 psf/nnn, plus 5-year option.
The average amount of inventory held is $150,000 (at cost). Raw materials are purchased for each job. The company usually produces the full quantity of parts for blanket orders with scheduled releases and stocks parts for later scheduled deliveries.
Company is certified with the iso standard 13485, specifically for medical devices. This is a significant area of opportunity for the company to focus on increasing revenues. Since iso 13485 is one of the most difficult certifications to obtain, the company is well-positioned to get the iso as9100 certification, which is mostly a subset of the iso 13485 standard. Obtaining iso as9100 would enable the company to manufacture aerospace parts and open the door to get business from local aerospace companies like Lockheed martin and others.
Abc company is one of the few businesses to be DLA (defense logistics agency) approved in silicon valley to work with defense contractors and sub-contractors for DOD (dept. Of defense) projects. The company is also on the approved vendor list for many large silicon valley companies.
The seller works part- time, less than 20 hours per week. Her spouse oversees the daily operations.
Seller wants to focus on other ventures. The financial recast of the books and records contain significant adjustments to earnings for which the owners have very detailed records for a buyer to review. There are several opportunities to scale the business for significant growth that the seller will discuss in person. This is a unique opportunity to purchase a turnkey business with an impressive reputation, seasoned and highly skilled employees and room for growth. Seller will provide training for a qualified buyer.
If a buyer wants to move the business and own an industrial building, we also have an 8,570 square foot vacant machine shop building listed for sale at $2.3 million. This building is zoned heavy industrial and has 800 amp, 480-volt, 3-phase power. It is set up for 12 cnc machines with power and air run to each location. There are 3 air compressors included, each of which is capable of running the shop. The owner will include metal work benches and storage cabinets for tooling with reinforced shelves. There is quality control room with its own hvac to maintain a steady temperature for consistent measurements of close tolerances. The building is located just a few miles from the existing location, so we don't anticipate losing any employees for a big commute.
To get more information about this Precision Machining Assembly Company business for sale in
Silicon Valley Area please phone Greg Carpenter (Broker - BRE License #:02058745) at 408-898-0393 and 408-444-7528 - if you get
voicemail please leave a detailed message - make sure you mention you
saw this posting/ad #261835 on BizBen.com. In addition to phoning
Greg Carpenter, make sure you email Greg Carpenter above to get more info about this
Precision Machining Assembly Company, to ask any questions or request an appointment to see this
business for sale. Thank you.