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Ammo Brass Shell Casings Recycling Biz

Location  California,United States
Asking Price Range  $250K - $500K
Gross Revenues  $665093
Net Profit / Cash Flow  $121089
Cash Flow Type  Sellers Discretionary Cash
Seller Finance  Not Disclosed
Year Established  2014
Number of Employees  1 - 3
Inventory  2500
Relocatable  Yes
Number of Employees  1 - 3
Real Estate  Leased
Training  6 weeks, 15 hours per week
Reason for Sale  Other interest

Description  
Niche Market Ammo Brass Shell Casings Recycling Business is very profitable and very unique. Owner has created a sorting machine to separate bullet casings by caliber so that they can be recycled to Ammunition manufacturers. He is unaware of any other large scale, high volume machine in existence that sorts shell casings by caliber. Until now, bullet casings had to be sorted by hand which is labor intensive. Casings are sold by the pound. Unsorted brass casings (70% Copper 30% Zinc) are sold for scrap at about $2.00 per pound. Sorted casings are sold at about $4.00 per pound to wholesalers who sell to the bullet manufacturers and there is very high demand. Hence, a major $2.00 per pound increase in profit when the casings are sorted by caliber because the raw metal cost is the same in either case. There is negligible competition so the scalability of this company is very large, especially with the leverage of the unique sorting machine. Replacement cost of the unique machine is estimated at over $100,000. It is important for a new buyer to have moderate working capital in order to take advantage of the changes in the metal bullet casing scrap recycling market. Owner has many other business interests and has tried to be an absentee owner but realizes that the owner must be focused on the company in order to grow and prosper. The owner's wife is the primary sales rep and wants to remain with the company on a commission basis. There are many other profit center possibilities such as e-tail sales to private re-loading customers and to international re-loading companies. The future of this niche company is wide open and has a very simple business model. Act now as this one will not last long on the market. Call Roger Civalleri at (310)384-5665 with reference LA3774 for more details. Asking Price: $290,000.


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