See Similar Listings

Iconic 62-year-old Specialty Machine Shop - $739,000

Los Angeles County, CA
listing image
Asking Price:$739,000
Gross Revenue:$2,000,000
EBITDA:$225,000
Established Year:1961
Cash Flow:$200,000
Inventory:$440,000
FF&E:$275,000
Listing ID: 2162983Listing provided by BizBuySell
BUSINESS DESCRIPTION

Machine Shop in full compliance with AS-9100 and ISO9002 along with ITAR registr

When a company prospers for over 6 decades within an industry as subject to change as machine shops it must be special. Over the decades, they’ve demonstrated the requisite skills to adapt to new machine technologies, and increasing customer demands for ever greater tolerances and sophistication of customer parts requirements. This multi-generational business ownership has done that and more.
The Company is a well-known and respected industry specialist, known for machining extreme accuracy of dimensions and producing close fits between mating surfaces. They have become one of a select few of remaining shops with these unique technical skills. As such, they have built a who’s who of elite customers who have depended on them for many years for precision parts for aerospace, electronics, cutting tools and mechanical seal industry. Their special high-tech machinery and skilled operators can achieve a high degree of flatness and surface finish without introducing subsurface damage. Clients who demand very tight tolerances of flatness, parallesism, or finish have depended on this Company for many years.
The company has a long history of full compliance with AS-9100 and ISO9002 along with ITAR registration, thereby making them eligible for high-tech aerospace projects. They service the Aerospace, Electronic, Precision Blade, and Automotive and Medical Industries. Their dependable history of on-time deliveries is a hallmark of their success.
The current owner took the leadership role from his dad, now after many years he wants to retire and find a new home for the business, and for his loyal team of highly skilled employees.
The purchase price includes:
1. Machinery recently appraised at over $272,000 (fair market value)
2. Inventory & work in process of $474,000
3. Net operating profit of $210,000
4. Sales of $2- million

DETAILED INFORMATION
Location
Relocatable
Inventory
Included in asking price
Real Estate
Leased
Building SF
10,000
Employees
17
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
There are machinery & tools of recently independently appraised at $275,000 fair market value. Additionally there is currently inventory and work-in-process of roughly $400,000. Much of the inventory closely matches longer term client orders.
Competition
The business's key customers have been active clients for decades in some cases. There are a number of long term contracts with key customers. Aside from the company's standard machine shop operations they also perform specialty machining at extreme accuracy of dimensions and flatness. They are one of only a handful of California companies capable of performing at these levels.
Growth & Expansion
There are numerous areas of growth with existing customers. They have never had any outside marketing, there are likely other customers who could avail themselves of the unique machining skirls of this business. The owner is a 2nd generation owner and has spent his entire profession career with the company and is therefor anxious to retire and not seeking growth.
Support & Training
Key employees would likely remain post close of sale. The owner, who lives close by, is willing to work through an orderly transition.
Reason for Selling
Want to retire.
Report an Issue with this listing
profile-img
Fred
Mercuro
logo-img
Phone Number
Fred Mercuro
Call Phone