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Ill Owner Drops Price of Established CNC Shop (17859)


Based in Central California, this 40 year old machine shop provides engineering and custom manufacturing services. The Company comes with supervisor and highly skilled, experienced machining staff who produce high quality parts for packaging, food processing tools, equipment, automotive parts and other industries. The majority of revenue is sourced from the packaging and food processing industry. The Company operates out of a shop-based location totaling nearly 9,000 square feet. The facility includes comfortable office area, shop space and good warehouse storage. The owner has thrived in an industry that has experienced tremendous change over the past fifteen years by transitioning away from large-run orders which can be easily handled by a smaller team. This approach allows them to maintain a solid, diversified business while enjoying higher margins and less wear and tear on the equipment. The Company’s customer base consists primarily of large regional food processing and packaging plant companies in need to machining and engineering services, with another customer base consisting of industrial, automotive, and agricultural industry clients. The operation is also capable of providing part and machine repair services to its customers on an on-demand, and through service-level agreements. The best buyer profile is an industry professional with a strong project pipeline or another CNC shop looking to expand through acquisition. A new owner is looking for a reputable, established operation capable of capitalizing on new customers that need partial, entire repair or engineering services. In 2023, the Company’s total revenue was $895,066, with Seller’s Discretionary Earnings of $310,803, compared to 2022’s $702,066 and SDE of $269,611. Motivated seller wants to retire, so price was reduced to $600,000 and open to carrying a note.



Listed By: Rebecca Hansbrough

Background information

Seller Number:

17859

Year established:

1984

Reason selling:

Approaching retirement and/or pursuing other interests.

Finance

Sales:

$895,066

Profits:

$310,803

Profit type:

Discretionary Earnings

Operations

Employees:

7 nonunion.

Equipment:

$350,000

Inventory:

N/A.

Premises

Facility:

Property valued at $1,400,000 is available for separate purchase from the Asking Price.

Square footage:

9,000+/-

Opportunities

Market:

Referral Sources.

Price and terms

Price:

$600,000

Financing:

Negotiable up to 20% for the right buyer.

Owner Transition:

Acclimation period of 12 months.