Iowa Tool & Die Manufacturing Metal Products Business For Sale

986

This Iowa tool and die business with over 1.9M in assets included in the purchase is a well-established metal fabricator located between Des Moines and Sioux City. A bank loan can be entirely collateralized with the existing assets and inventory of the business.
They have consistent product quality and craftsmanship due to the knowledgeable staff. The business engages in creating products out of metal, including firearm components, custom-built machines, jigs and fixtures for cabinets. This company has the equipment to build almost anything they need to.
The business has enjoyed steady profits for many years mostly through word of mouth advertising from satisfied customers. This business is poised for growth but needs someone with good marketing and sales skills. Everything is in place for a new owner to step in and start running with this business. The business is well-managed and profitable yet there are still many opportunities for growth.
The bank loan can be entirely collateralized with the existing assets and inventory of the business.

Financial Overview
List Price: $2,100,000
Gross Sales
2015: $899,562
2014: $852,580
Owner Profit/Cash Flow
2015: $348,044
2014: $405,978
Profit Margin: 38%

Assets Included in Purchase: $1,976,000
Plant Property and Equipment: $1.2 M
? 4 surface grinders, 3 lathes, 2 mills, 1 CNC mill
? 8 machining centers, 2 heat treatment furnaces, 2 floor model drills, 5 presses
? Additional equipment including rotary tables, grinding fixtures, welders, band saws (both horizontal and vertical)
Inventory: $776,000
*amounts may vary
Business Information
Year Established: 1989
Location: Western Iowa
Service Area: Sioux City / Des Moines / Omaha and Midwest region
Facility: 6,000 sq. ft
Reason for Selling: Retirement
Employees: 5: Assistant Foreman, Setup/Tool Maker, Machine Operator, Machinist/Tool Maker, Office Manager/Machine Operator
Seller Support: Will provide full training and support to incoming buyer; will remain on as a part-time employee if requested by new owner
Growth Opportunities: Expand marketing (currently only by word-of-mouth advertising), hire salesperson
Items Manufactured: Firearm Components, custom-built machines, jigs and fixtures for the cabinet industry, components for production machines (also provides service)

Funding Example
Purchase Price: $2,100,000
10% Buyer Down Payment: $210,000
20% Seller Financing: $420,000
70% Bank Loan: $1,470,000
The bank loan can be entirely collateralized with the existing assets and inventory of the business.

Facilities:

Location: Western Iowa Service Area: Sioux City / Des Moines / Omaha and Midwest region

Competition:

Items Manufactured: Firearm Components, custom-built machines, jigs and fixtures for the cabinet industry, components for production machines (also provides service)

Growth Potential:

Expand marketing (currently only by word-of-mouth advertising), hire salesperson

Training/Support:

Will provide full training and support to incoming buyer; will remain on as a part-time employee if requested by new owner

Seller Financing:

20%

Sale Reason:

Retirement