Long Established Welding and Machine Shop – SC2084

Detail information about the listing

 

Financial Information

 

Asking Price:  2,495,000

 

Gross Revenue:  854,713

 

Cash Flow:  214,843

 

Down Payment:  2,000,000

 

FF&E (Included):  500,000

 

Inventory:  600,000

 

Financing: Yes

 

Business Location

 

Glenn County, California

 

Primary Business Category:

 

This long-established welding and machine shop in Northern California is Sole Proprietorship and was under the current ownership for the past 35 years but has been in business for over 75 years! For over seven decades, their team of master craftsmen and welders have been working to perfectly execute projects for fabrication, repair, and construction. What services do they provide? Machinery rebuilds and repairs, vehicle welding, trailers, steel fabrication, axles, hitches, and repairing customers’ equipment. They have lathes, shears, mills, press brakes, and can do any type of welding. The business comes with the building and the 2 lots next to it, and they are located right on the railroad tracks.

 

Competition Description

 

There is one competitor in the area, however, there is so much work that they rarely see the competitor in the marketplace.

 

Growth   Expansion overview

 

Growth can be obtained by expanding into other markets that are being served by the business. The largest customer segment currently served is the farming community. This segment is recession resilient and in high demand, and this business has earned its reputation in the repairs and equipment it can service in this industry. Currently approximately 60 percent of the business is in Farming, with approximately 40 percent in other industries. Another unique feature is they sell raw iron and steel and have a large inventory of this at a lower purchased cost. By selling more of this material, a Buyer could quickly add revenue to the company and high profit margins.

 

Support   Training Comments

 

Seller agrees to provide training for 4 weeks at 30 hours per week. Additional training and support from the Seller are available at mutually agreed upon terms between the Buyer and the Seller.

 

Financing Comments

 

Willing to finance  495,000 (20 percent) over 5 years at 7 percent interest with a monthly payment of  9,801.59

 

Reason For Sale

 

The seller would like to retire

 

Home Based: No

 

Year Established: 1946

 

Franchise: No

 

Year Acquired: 1987

 

Willing to Train: Yes

 

Relocatable: No

 

Required Licences:

 

Is Property Leased: No

 

Real Estate Available: Yes

 

Real Estate Included: Yes

 

Real Estate Value:  1,250,000

 

Real Estate Asking:  1,250,000

 

Days Open: Monday – Friday

 

Hours Open: 8:00 am to 4:30 pm

 

Full-time Employees: 3

 

Part-time Employees: N A

 

Is Management Staying: No

 

Distressed: No

 

Monthly Payroll: ON REQUEST

 

Building Size: 8450 sq ft

 

Monthly Rent: N A

 

Lease Miscellaneous: No

 

Lease – Property Owned

 

Broker: ProEquity Asset Management Corporation License ID: 01870526