Our client operates a Full Scale Machine Shop providing heavy equipment maintenance, custom fabrication/components, cylinder/pump repair, re-chroming, hose distribution and emergency services to the construction/waste/utility/EMS industries. The company has solid profit margins and stable revenues - with major long-standing affiliations throughout the Northeast United States. The seller's immaculately organized facilities are located in Ocean County (central NJ) with a very desirable long term lease in place.
The company enjoys a competitive advantage through a highly skilled staff that provides unique and dependable top quality craftsmanship to heavy equipment customers in the region - recycling equipment, waste management equipment, utility trucks, fire trucks, etc. Moreover, there is tremendous upside revenue potential with an aggressive marketing effort by a new owner.
The company has been fully reviewed and conservatively appraised by a well-known national valuation firm at 3.1x EBITDA (ttm). A complete report is included in the prospectus. There is zero A/P or debt to be assumed and there is $630k in tangible assets (conservatively estimated) included in the deal. The business is pre-qualified by an SBA lender subject to buyer's financials, and by implementing the proposed deal structure an owner operator will obtain $180k in after-debt cash flow starting in year one.
A comfortable six months transition period will be provided by an owner who truly wants to concentrate on his craft but who also wants to see his business continuing to flourish. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
(ALL DATA BASED ON SIGNED TAX RETURNS)