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Genesee County

  • Listing Number: 217-22193

    Category: Manufacturing

Asking Price $175,000
Gross Revenue $352,907
Total Adjusted Net Income $138,523
Equipment / Fixtures $50,000
Year Established 1973
General Location Genesee County

NO SBA Financing (too small). Priced for an all cash offer. Proof of funds and a conversation with broker are required before setting up a visit to the shop.This business has been operating for 50 years. The current owner took over in 2009. It has averaged $350,000 revenue and $139,000 profit over past 5 years with the owner working 10-20 hours per weeK and with 1-2 employees. In 2022, sales and profit dipped, but this year is picking back up. A significant personal / family event requires the owner to exit. PRICE & TERMS$99,000 for the building or rent from the owner at $1500 per month total with option to purchase later.$175,000 for the businessall cashminimum of $150K down, seller financing on the balance for qualified buyersproof of funds required before setting up a visit to the shop.  NOTE: A 2022 buyer offered almost $300,000 and backed out due to the revenue decline in 2022. However, the 2023 pipeline is strong and a new owner can take advantage of the reduced price.~$140,000 pipeline of orders received as of 3/25/23, estimated $100K net profit on pipeline since inventory and in-process parts are all includedAll equipmentSmooth training and transitionIn business since the 1970sThe two key customers have been customers since the owner acquired the business in 2009 Ideal Buyer & Due DiligenceThe ideal buyer would have to verify and be comfortable with the following:History and stability of the two key customers and pipeline of orders already receivedAssess the opportunity with 3-4 other customers/past customersGet a feel for the marketplace and potential for additional customers and growthBe a hands-on owner operator and ideally hire 1-2 more employees over 6-12 monthsOption to hire/promote a supervisor in 9-12 months enabling the owner to spend less than 10 hours per week focusing on finances, strategy, customer relations, marketing and business developmentRelocation is possible, but may not be economical over a long distance or out of state Reason for SaleA past health issue within the owner’s family has resurfaced and requires the owner’s attention. This is the reason he has been limited to 20 hours per week since the beginning of this year. This listing is not expected to last long at this price. The value is in the pipeline and long-standing customers. The Seller could run through the pipeline himself and liquidate but does not want to leave the customers in a bind. Current State of the OperationSince the owner can only be there 20 hours per week, the sole employee has also been limited to 20 hrs per week since the owner is not comfortable with the employee in the shop by himself for safety reasons WIth 2 people working 20 hrs per week since the beginning of the year, they shipped roughly $40,000 in the first two months. Another $140,000+ of orders is on the books. A new owner coming in full-time alongside the current employee full-time could complete the backlog by the end of the summer. The owner estimates the net profit on the backlog to exceed $100,000 given all the materials have already been purchased. TransitionThe employee knows 95% of the operation and can do the bulk of the training during the transition and beyond. The owner will train the management side of the business. His availability will revolve around doctor’s appointments and personal responsibilities, but he is committed to being available for a new owner. A past employee helps out occasionally with some hours when he is available. Facility & EquipmentThe building is 2200 sf of shop space and 200 sf of office space, plus a shed in the back and more space in the lot. The building shares a parking lot with Maaco. The equipment is organized for operators to efficiently work multiple machines at the same time. The equipment is old, but reliable and produces great parts.The core business is the turnkey production of about forty (40) similarly designed pilot pins and other parts used in magnetic drill presses. The company performs custom centerless grinding services specializing in multiple diameters, slotting, and precision tapered bearings. Two key customers account for nearly all of the revenue. 

The information contained herein was received from the Seller and is deemed reliable but not guaranteed. First Choice Business Brokers (FCBB), has relied upon the Seller to provide the above details and has NOT verified this information. FCBB is not responsible for and does NOT warrant any statements, projections or any information provided by the Seller. The User/Buyer will be solely responsible for verification of the Seller's profits and business operation. By acceptance of this document, the Buyer/User agrees that all information contained herein is strictly confidential and will not be disclosed to any other party without prior written authorization. The Buyer/User confirms and understands that FCBB has NOT performed an independent investigation of the business or figures quoted herein.

FCBB strongly recommends that a Buyer should seek legal and accounting advice prior to purchasing a Business. Any change to the above information requires both the Seller's and FCBB's written approval. Any change made to this document without FCBB and Seller approval is not valid.