BUSINESS FOR SALE
Listing #KPC-10790703
Metal Fabrication Business
SUMMARY: Cash flow for this Texas-based Company has been more than $300,000 for each of the last two years and is projected to be the same in 2007. The Owners started the Company on a part time business in 1975, grew to full time in 1979 and incorporated in 1982. The Company fabricates a variety of aluminum, stainless, monel, and other metal products. A highly experienced fabrication team manufactures the Company's products to its high standards. PRODUCTS: The Company's capabilities include sheering, bending, rolling, welding, and machining metals to manufacture 1) Horse Stall and Barn Components (50% of revenues; stalls, grills, windows, doors, pens, etc.) and 2) Heavy Fabricated Equipment and Products (50% of revenues; pump skids, oilfield equipment, special duty trailers, pipe coating and pigging equipment, rail car components). CUSTOMERS: The Company completes 600 orders/year for horse racing arenas, commercial horse barns, boarding stables, and individuals. The Company has eight major clients for its Heavy Fabrication Products in the oil & gas industry and in the railroad industry. MARKET: The Owners, satisfied with their financial results and having no interest in growing the business, have maintained revenues and profits at a consistent level. However, there are significant opportunities for growth in both product groups. PERSONNEL: The Company has 10 full time employees and one part time employee. Seven of the employees have been with the Company more than five years and two employees more than 20 years. All would be expected to remain with a Buyer. OBJECTIVE: The Owners, in their mid 60’s, have decided to sell and retire after a transition with a Buyer. They could provide additional support in a consulting role. FINANCIAL:
Year Ending Dec 31 2007 Estimate 2006 2005 2004 Revenue $1,740,000 $1,745,000 $1,261,600 $1,033,700 EBITDA $172,800 $152,600 $172,200 -$100 Cash Flow $303,700 $309,500 $309,900 $126,300 CF % Rev 17.5% 17.7% 24.6% 12.2%
PRICE AND TERMS: The Owners are asking $900,000 for the Company and will consider owner financing for a qualified buyer. Included in the sales price are: Working Capital (A/R - A/P) of $82,200, finished inventory of $60,000, and furniture, fixtures & equipment of $270,000. Real estate is available for purchase ($200,000) or lease ($1,700/mo).
Don Kirchoff
FOR ADDITIONAL INFORMATION CONTACT: Phone: 281-335-1200 Fax 281-335-1246 donk@kpcompany.com 1419 Pirates Cove; Houston, TX 77058
www.kpcompany.com
Information provided is from sources deemed reliable, however no representation is made as to its accuracy. This profile is necessarily brief and may be subject to errors, omissions, prior sale or withdrawal.