* Included in Asking Price
One Person Machine Shop well suited to part time operator or Growth!
This company has a long operating history serving both OEM customers, as well as other machine/metalworking shops. Seven, manual Davenport screw machines provide excellent flexibility to secure contracts for small parts with purchase order quantities of tens of thousands of pieces.
The screw machines are well maintained and in excellent functional condition. The shop is tidy and all associated equipment and accessories such as cams, sprockets and collets are neatly organized. In addition to the Davenport machines, the company also owns a long list of equipment including surface grinders, mill, lathe, optical comparator, chop saw and vintage "Tow Motor" forklift.
California has the largest number of machine shops in the country. This business is structured ideally to continue to compete against other machine shops, a significant number of which employ 4 or less, for a share of the estimated $5B per year California machine shop revenues. The Company could continue to be operated as a standalone, or added to an existing machine shop platform.
The Company occupies 2,400 ft2 in an attractive, well maintained, business park. The current total monthly lease rate is $2,071 which includes a $168.00 CAM. The current lease expires May 31, 2020. This provides an good opportunity to either lock in a new multi-year lease, or move the business and equipment into another facility without lease termination negotiation.
Opportunities for growth include increased sales and marketing in both current industries served and other industries not currently marketed to which also currently have a need for machine shop services.
After over four decades of ownership and operation, the seller is looking forward to retirement.
Required Licenses: City of Buena Park Business License
Real Estate Number: 02071556
|Competition:||IBIS World report suggests that machine shop services are regional in nature and that the State of California is home to the highest concentration of machines shops in the country, approximately 2,100 California shops which is approximately 2,100 shops in California, 46% of which employ 1-4 employees.
Competition is comprised primarily on the following:
* Company reputation
* Range of services offered
* Ability to provide flexible or custom services
* Ability to provide competitive quotes in a timely and accurate manner
This data suggests robust competition, not dominated by any large players, in which managers skilled in operations and sales and marketing should be able to successfully compete.|
|Growth Potential:||The IBIS World data indicates that the total, annual California machine shop revenues are approximately $5 Billion.
The current owner has not developed or executed a meaningful sales and marketing outreach program. Revenue growth opportunity exists for an owner with the energy and skill to develop and execute and effective outbound sales presence.
Additional revenues might be achieved via the addition of CNC machinery which would further increase the company capabilities.|
|Training/Support:||Seller will provide two weeks of training at the close of escrow comprised of approximately 35 hours per week. This training will consist of providing familiarity with the Company's customers and vendors, the quotation system currently utilized, and general familiarity with and location of equipment, supplies, etc.
This training will not include instruction sufficient to teach an individual not familiar in the art and skill of machining how to operate the equipment or become a proficient machinist or operator.|
|Seller Financing:||2019: Revenue $87,869 Seller Cash Flow $38,564
2018: Revenue $104,601 Seller Cash Flow|
|Sale Reason:||Seller retirement|
Seller Reference #LOSWHIT001-N35
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