Custom Machining Company (Union Shop)

ASSET SALE
We are offering an well-established Union Machine shop in Chicago land area for an Asset Sale.

This Union Shop specializes in the custom manufacture of connecting rods, cases, blocks, heads, and other metal components for OEM applications. The Company has focused on continual improvement in all areas since its founding, from meeting and exceeding ISO standards, to maintaining a stringent quality control system, to developing an outstanding level of customer service. Since its founding, the Company has expanded from the dedicated production of connecting rods to full service, single-source machining of multiple custom components. Over the historical period, the Company derived 100% of revenues from contract manufacturing for its customer base.

We are offering this business as pure Asset Sale and not based on the Cash Flows. Even though company made good profits in previous years, but has decline in Sales and Profitability this year due to natural business cycle and also due to lack of any marketing/sales effort.

OFFERINGS

Equipment, machinery and fixtures worth around $1.2M in fair market value
Current and future customer contracts worth an estimated $627,000
Real estate which is valued at $920K by a professional appraiser

Bids: We are inviting serious and competitive asset purchase bids purely based on the assets listed above. Please note that we are not entertaining any revenue / cash flow / EBITDA based offers for this deal.

INVESTMENT APPEAL

Strong Supplier Relationships: The Company has long-term relationships with a diversified vendor base. The Company considers its supplier list an asset as it will benefit their ability to provide the proper machining services to customers. The Company sources its products entirely from domestic vendors.

Proprietary Expertise: Many of the Company’s key employees and managers have long histories in the industry. This wealth of experience and expertise provides the Company with a significant intangible value and advantage over many competitors.

Equipment Capabilities: The Company uses top-line systems from the most renowned equipment manufacturers to meet and exceed the high level of delivery and quality requirements expected by the industries it serves. It has invested in capabilities, with no need for replacement machines at the time of this report.