High Cash Flowing, Fully Equipped Steel Fabricator
| Asking Price: | $4,950,000 |
| Gross Revenue: | $6,400,000 |
| EBITDA: | $900,000 |
| Established Year: | 2004 |
| Cash Flow: | $900,000 |
| Inventory: | $1,000,000 |
| FF&E: | $2,000,000 |
It has been a great 20 year run for the owners of this very successful, specialized steel fabrication business, but having reached retirement age, they have decided to transition their solid and profitable business to only its second generation of owner-operators.
Located in a late model 55,000 square foot facility in an attractive industrial park in a desirable and growing West Michigan city, the business has owned and occupied this squeaky clean facility (which includes as a bonus, lots of office space) for the past 17 years. The facility can be can be leased from the sellers under favorable terms or purchased outright in a separate transaction.
The single shift operation employs 22 loyal, well-paid, skilled, non-union employees. The company runs 4-10 hour days which results in a solid, life-style bonus for the employees. And with lots of floor time available in the large plant, there is ample opportunity for a new owner to grow the business.
The equipment included in the sale is both extensive and in excellent condition. A 2024 “fair market value” professional equipment appraisal totaled $2.0 million of machinery and equipment, all of which is included in the deal price. The Company’s specialized machinery combines with its superior technology to capably serve customers from a variety of desirable, non-automotive industries.
Over the past three years, this impressive business has averaged $6.4 million in annual revenues (from a combination of domestic and international sales) while recording an average of $900,000 of annual EBITDA. Imputing a 5.45x EBITDA multiple results in a listing price of $4.95 million which includes $2.0 million of appraised equipment value and a current cost basis inventory of nearly $1.0 million. Additionally, the sellers will carry a $500,000 seller note for a qualified buyer and offer transition training to meet the buyer’s needs and expectations.
The sellers envision a cash free, debt free asset sale in which they retain cash and A/R while retiring all liabilities. The buyer will receive all inventory, all machinery and equipment, and of course the goodwill of the business.
