It has been a great 33 year run for the founder/owner of this outstanding CNC precision machining business; however, the seller now plans to transition his company to only its second owner and then retire. His decision could be your opportunity.

The business is located in a very attractive 12,000 square foot facility in southeast Michigan. The real estate, worth an estimated $700,000, can be leased or purchased in a separate transaction. The company has 22 highly skilled, very dedicated, non-union employees working as machinists, engineers, quality and sales personnel. A growth minded buyer has the opportunity to add a second shift to the current single shift operation.

The business has several profit centers including: (1) manufacturing a variety of custom designed cutting tools; (2) manufacturing (and shipping from stock) standard tools; (3) manufacturing a variety of holding fixtures; (4) servicing tools for distributors and tool shops nationwide; and (5) duplicating and manufacturing equipment repair parts.

The company maintains a modern bank of 3, 4 and 5 axis CNC mills and live tool lathes, which are complimented by many other pieces of equipment, the combination of which allows the business to offer special services such as laser etching, black oxide coating, induction welding, and the like. New equipment is regularly added both to expand capabilities and increase capacity. Equipment expansion efforts to date have satisfied all current customers’ requests and needs. The company is ISO 9001 – 2008 certified.

In 2014, the business recorded $550,000 of SDE (the historical, normalized cash flow available to pay an owner-operator and service debt) on revenues of $3.0 million. The business is being offered for $1.7 million, an attractive 3.1x SDE. The listing price includes an estimated $600,000 (value in place) of machinery and equipment and approximately $250,000 of inventory, the price does not include the accounts receivables which run about $220,000. In addition, a meaningful seller note could be available for a qualified buyer

Posted Jan 6, 2016

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