Long standing, profitable “Niche” manufacturer’s service business in bonderizing of metal products. Specializing in industrial bonding of electrical motor parts used is wide range of applications for more than 60 years. The company offers two exclusive services: 1) Bonding of Electrical Motor Lamination; and 2) Epoxy Insulation Coatings. The company operates primarily in the Bonderizing of Metal/Metal Products industry within the Fabricated Metal Products sector. It has a reputation for providing quality, cost-effective solutions as an independent company highly ranked in the industry. Located in the heart of Los Angeles near downtown, the company has an impressive base of well-known manufacturers in the automotive, aerospace, medical device industries along with many other types of industries.
For several years, historical annual revenue has averaged $950,000 - $1,020,000 / annually and cash flow has averaged $325,000+/-. The year to date revenue and cash flow is trending upwards and the year to date monthly gross revenue average is $86,308+/-/month and on track to be a tad over $1M annualized in annual revenue. The figures in this ad are from previous years.
The company has built a solid customer base with repeat customers and effective word-of-mouth referrals that continue to grow the business. Company has a national customer base along with a significant customer base in California. The company maintains a nominal amount of inventory (included in the asking price). The majority of the parts or components this company works on are provided by the customer. This company then utilizes its equipment, expertise and trained employees to bond and or epoxy the customer's parts and then they are shipped back to the customer to be used in finalizing the products that they manufacture. As the seller says, they provide a “service” for their customers. Long term employees are in place, many have been on board for more than 20 years. The ownership is made up of an elderly owner in his mid 90's who owns the majority of the company and two sons in their 70's who work at the business 4 days per week and will consider staying on if required. As per the owners, the responsibilities and learning this business is pretty straight forward. The ownership will provide ample training as part of the purchase price and provide seller finance for a qualified buyer with sufficient down payment. The real estate (9,330Sf industrial building) is available for sale at $2,295,000 or for lease at $12,000/month.
There is strong growth potential as there are just a handful of companies nationally in the Fabricated Metal Product sector that provide this “niche” service. Many companies rely on this service to outsource this process as it is not cost efficient for companies to invest in the equipment and staff needed to complete this process. As per the seller, the company does no marketing and there is no website or on-line presence. A new owner has significant opportunity to develop a formal sales/marketing programs to further grow the business. Seller will discuss this further.
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Prime location in low-rise commercial corridor. Company operates from an industrial building owned by seller. Building may be available for lease or sale.
Several growth opportunities that seller will discuss.
Limited. Seller to discuss.
Seller will provide training to qualified buyer at no additional cost.