Fabrication Mfg. with land, $3.5MM EBITAD


Manufacturing

Overview

Status Active
Listing ID 68409
Listed Price $12,500,000
Down Payment $11,500,000
SDE $3,500,000
Total Sales $13,500,000
FF&E † $3,505,000
Real Estate † $3,550,000
Inventory ‡ $45,000

Reason For Sale

Retiring

Financing/Terms

Seller will finance $900k for a qualified buyer at 6% interest for 10 years

Training & Support

Six weeks forty hours per week.

† Included in price
‡ Not included in price

Contact Information

Hal Janke, CBI, AMAA
President

Office:
Cell: 760 612-7018
Fax:
Email: info@omegabusinessadvisors.com


Operations

Year Established 1,979
Last Acquisition 1,989
Absentee Owner No
Franchise NA
% of Business Online NA
Days & Hours Mon-Friday, 7am - 4pm
Number of Employees 64 pt | ft

Location

Southern CA.
Type of Location Stand-alone
Square Footage 20,000
Lease Expires NA
Options NA
Relocatable No

Executive Summary

Business Description

Well established, strong reputation in the industry. Mostly defense and commercial accounts. Suggest buyer have a Net Worth of $11MM. Business acquisition includes, $3.5MM in equipment, $3.5MM in property/bldg., 30% ESOP in place, steady EBITAD of $3.5MM average over last three years, including 2009. seller will stay for up to two year for a smooth transition. Steady and consistent revenues and earnings. Business Summary-Company Process Starts at the bidding process, goes from a public bid then followed by company authorization then the bid(s) are submitted. The bid is followed up to see if the project and bid were accepted. If bid is not successful then they go on to the next project. If successful then they start to assign project mgr. and estimator to get contract drawings from contractor they go to detailer for shop drawings, get material prices for the project. On larger jobs sequence numbers to the project are ordered. Once the shop process is finished they are compared to the drawings of the project. From here the materials are brought into the warehouse, fabricated and formed to exact specifications and size. Over the last ten years every project that was successfully bid on has been delivered on time. Material is delivered to site, the construction crew and cranes come into the site and the project is erected in the time so agreed to. Overview: Bid team, project team, contractor team, finance team, design team and installation team all come together to make this a very successful and well organized company. In 2009, 85% of there projects were defense bid and 15% bid projects. This company works on a single shift, Mon.-Friday. There is an ESOP in place that has 30% of the stock of the Corporation. The buyer would need to have a Net Worth of approx. 15MM+ for the Seller to feel comfortable. Seller also requires the buyer of the Company to hold onto the company for at least six years or longer. The present owner sees this company as his extended family.

Historical Summary

Estab. 30+ years with steady growth in CA. This business could expand revenues into other states without any added expenses.

Owner Qualifications

Financial qualification, related industry background and willing to be active

Competition

Three companies in CA.

Potential for Growth

Good upside to expand outside of CA.


Facilities & Locations

Comprised of 2.75 acres, two bldg.for offices, approx. 20k s.f. under roof. Fully equipped with equipment value per the seller of $3.5MM