*Special Note: In a victory for small business buyers, the recent $900BB stimulus bill directs the SBA to pay the first 6 months of new SBA 7(a) loans approved between February 1 and September 30, 2021 (up to $9,000/month). Our advice: Don’t wait. Find a quality business and get moving quickly. Banks will be busy this year and buyers that wait until July/August will likely lose out.
This Company is a manufacturer of quality precision machined parts. They are a full-service machining facility that primarily focuses on CNC machining, OD grinding, and surface grinding. The Company provides full-service capabilities from prototypes, testing, and medium to large production runs. This versatile Company is a proven supplier of precision machined parts servicing many industries, including automotive, defense, appliance, medical, dental, and various OEMs (non-automotive and automotive-related). Most of the Company’s customers are local; however, the Company does service customers across the country.
The current owner started the Company in 1976 and grew it from a small one-lathe operation with a single customer to a national supplier of precision, close tolerance parts in a wide variety of materials such as aluminum alloys, copper and brass, stainless steel (food grade), hot and cold rolled steels, titanium, ferritic, inconel, and all exotic materials.
The Company has a large and diverse equipment base that supports an array of services. Its equipment base consists of over 50 machinery assets that combine for a Total Fair Market Value of nearly $900K. The industrial facility measures approximately 33,630 square feet in size and sits on 3.57 acres. This fantastic piece of real estate is valued at $2.22M, and the owner would like to sell the property and Business to a prospective buyer. This presents a unique opportunity for both an individual buyer looking to enter the industry or a strategic buyer wanting to add a substantial piece of real estate and a diverse equipment base to their current operation.
Potential Buyers must have a minimum of $1,000,000 in available liquid capital to receive information about this opportunity. Potential Buyers must also be interested in purchasing the Business and real estate – not one or the other.
Real Estate: Owned – The owner would like to sell the property with the Company.
Total Building Size: 33,630 square foot facility, including 4,030 square feet of office space.
Seller Financing Available: Yes
Seller Note: Limited Seller-Financing Available for Qualified Buyers.
Number of Employees: 16 employees
Year Established: 1976
Facilities: The owner owns the property and 33,630 square foot industrial facility through a related real estate holding company with a partner. The property and building are included in the sale. The facility has one exterior truck well, one grade-level door, 45 parking spaces, and 1,800 amps of power. The building has undergone many refurbishments over the last five years, with the installation of three rooftop HVAC units, new LED lighting fixtures installed throughout the entire facility, and landscaping improvements. The office was also recarpeted and repainted at the same time.
Support/Training: Ownership is willing to provide reasonable and customary transition assistance.
Reasons for Selling: The owner would like to retire.
(1) Add a Salesforce and Marketing Strategy: Adding a salesforce could allow the Company to proactively acquire new customers while competitors shut down, as well as have a team built around maintaining a strong relationship with existing customers. Retaining existing customers is significantly cheaper than developing new long-term relationships and is something the Company can capitalize on while gaining market share. In addition, the Company’s website was last updated in 2010. By updating the website, the Company’s website traffic may increase, likely resulting in added business. Also, the Company has room to grow in marketing to existing customers, as they currently solely keep in touch by sending bulk emails to customers.
(2) Develop Outsourcing Partnerships with Machine Shops: Some of the Company’s projects that are not as profitable, or are not the Company’s specialty, can be outsourced. By doing so, the Company can gain many benefits that will help increase their business while decreasing operating costs.
(3) Utilize Open Capacity: The Company is currently utilizing 50% of its facility and equipment. By increasing the Company’s usage of the facility and equipment, they will be able to fulfill the uptick in activity and the expected greater market share that will coincide with the previously stated growth opportunities once put into practice. One way to fill the Company’s capacity is to implement a second shift.
The BEST way to receive confidential information about this opportunity is to fill out the form below.
Upon doing so you will receive a link via email to review and sign our confidentiality agreement. Once signed, we will be able to further the conversation and send you the confidential Offering Documents. Please contact [email protected] with any questions. Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and answer a few questions related to their background and interests. Enquire today about this *Turnaround* East Michigan Manufacturing and Precision Machining Business (Real Estate Included) for sale!