Straightforward operation / niche manufacturing business supplying high-performance threaded fasteners to the motorsports industry.

Wayne County

Price is firm and min $250K down is required.

The company manufactures parts for high performance automotive engines. Its international customers require higher quality threaded fasteners. All the engineering has been done over the years and the operation is primarily a manufacturing and fulfillment operation. At its peak, revenue was near $200K and SDE near $100K. The owner does all of this himself in 20 hours or less per week due to his limited ability to work longer hours. Recent financial performance has declined due to health, but customers will come back as they are hobbyists willing to pay for his premium parts. He does no selling or advertising and is continually working on back orders. This offer includes:

• 32 years of goodwill and brand recognition

• All assets outlined on the asset list

• Considerable excess production capacity

• 3 weeks of training included up to 20 hrs/wk

• Ongoing guidance and support as needed

• International customer base

• Back-orders

• Performance based on zero employees

• Performance based on less than 20 hrs/wk by owner

• Non-compete - owner retiring

• Revenue trending back up

Past revenue was higher when the owner had employees, but the owner has chosen to run this as a one-man show with no employees for many years. The ideal Buyer will have or hire personnel capable of centerless grinding and operations support (thread rolling, part blanking, etc.). The owner estimates the current equipment is at 35% capacity, so a new owner could triple the business without adding equipment. Once at full capacity, the bottleneck is grinders. Smaller grinders could be added for $25,000 which would then double the capacity yet again. Current inventory at wholesale is ~$20,000. This does not include additional work in progress or raw materials (steel).

Opportunities for Growth

• Hire staff: centerless grinder and operations support (thread rolling, part blacking, …)

• Have parts on the shelf versus the current 6 month lead times

• Develop a parts catalog online

• Enable online ordering

Marketing & Sales Opportunities (once production is increased)

• Update web site

• Attend pertinent trade events

• Evaluate opportunities for advertising

• Evaluate opportunities to work with manufacturer’s reps

• Highlight differentiation versus high volume competition

• Optimize current customer mix of retail (~40%) and distributors (~60%)

• Consider commercial customers at higher volume/lower margins

Listing Number:

21253

Category:

Manufacturing

Location:

Wayne County

$375,000

Financial Information:

Gross Revenue:

Listed Price:

$375,000

Down Payment:

Total Income:

Year Established:

1989

Lease Information:

Square Feet:

3200

Total Rent:

$1,667

Lease Expiration:

11/2022

Lease Options:

N/A

Asset Information:

Leasehold Improvements:

Equipment / Fixtures:

$200,000

Inventory:

$25,000

Other Assets:

N/A

Additional Information:

Full-Time Employees:

Part-Time Employees:

Special License Required:

none

Contract Staff:

Training Period:

3 weeks

Reason for Selling:

retirement

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