MergerPlace

Electronic Scales Service

Houston, Texas


  • Asking Price: $89,000
  • Gross Income: $120,954
  • Cash Flow: $46,954
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $97,000
  • Listing ID: #188355
  • Established: 1976
  • Employees: Less than 5

Business Description

UNDER CONTRACT

The Company manufactures, installs, maintains and repairs heavy industrial scales. The need to manufacture scales has declined due to an influx of domestic and foreign manufacturers but the need for installation and service has grown because a number of these companies do not have a staff of installers and technicians therefor creating a demand for someone to install and maintain their products.

The types of scales the company specializes in are found in many industries including:

1. Feed and Grain Elevators
2. Oil and Gas Production
3. Cement Plants
4. Steel
5. Chemical Plants
6. Warehouses
7. Manufacturing Plants

This is just a small sampling but should give you an idea of the magnitude of companies needing this type of service. There is also a whole market of smaller scales that need calibration and maintenance that the company has currently chosen not to pursue.

The Seller currently handles all facets of operations for the company. The Buyer will be thoroughly trained by the Seller but should also have background in the industrial scales industry in either a sales or technical capacity.

The company is located in a small industrial building with two offices and large garage for parking trucks and storing inventory and parts. The building is on a year-to-year lease. The location could be moved to fit the needs of the new owner because it is used for administrative office space and storage only. All of their business takes place at the client’s facility so the business would not be impacted by a change of location.

The owner is willing to provide an extended transition and training period to the Buyer. At the current asking price the owner would be willing to provide up to six months of training which would be included in the sales price. Also included in the sales price are the inventory, FF&E and the net of accounts receivable and accounts payable, currently valued at $35,000.


Business Details

Primary Business Category: Services - Professional, Scientific and Technical
Location: Texas
Metropolitan Area: Houston

Company Information

Year Established: 1976
Home Based: No
Franchise: No
Relocatable: Yes
Number of Employees: Less than 5

Financial Information

Asking Price: $89,000
Gross Revenue: $120,954
Cash Flow: $46,954
EBITDA: $87,297
FF&E: $97,000
Seller Financing Available: Yes

Property Information

Facilities:

The company is located in a small industrial building with two offices and large garage for parking trucks and storing inventory and parts. The building is on a year-to-year lease. The location could be moved to fit the needs of the new owner because it is used for administrative office space and storage only. All of their business takes place at the client’s facility so business would not be impacted by a change of location.

Growth & expansion opportunities:

The demand for the company’s services has been very strong and continues to grow. They have chosen to not take on new clients because the owner hasn’t wanted the additional workload but there is still significant demand for the company’s services. The company is well managed and has done a good job of maintaining revenue, cost of goods, gross margin and profits in spite the owner not wanting to take on additional workload.

Competition:

There are only a limited number of competitors and they are typically large organizations who charge rates that run 2x to 3x more. The owner feels the only hindrance the last couple of years have been his own reluctance to expand and take on new business.

Reason for selling:

Retirement

Contact Business Seller

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Business Listed By:

Brad Tait

Tait and Associates Business Brokers