Component and Assembly Manufacturer For Sale

Business description

The Company is a manufacturer of high precision components and assemblies, producing spare and replacement parts for upgrades and required maintenance on Defense related equipment. The well-established repeat customer base includes a variety of government defense agencies and commercial businesses. Approximately half of the production is handled in house and the remaining production is out-sourced to a diversified network of pre-qualified manufacturers. Gross sales for the period ending 10-31-08 are expected to exceed $3.85 million, with recast net income of $1.45 million, based upon YTD sales and secured customer contracts/backlog. The Company has recently been awarded a series of sizable multi-year contracts and is poised for future expansion. This has resulted in a $12.4 million backlog over the next 3 years.

Property information

Real Estate:

Real Property Included

Location:

The Company is housed in a 10,000 square foot location in the New York Metropolitan area.

Other information

Expansion potential:

The company has recently been awarded a series of sizable contracts that are larger than what the historical focus has been. This has resulted in a $12.4 million backlog over the next 3 years ($6 million of that for 2009). The firm is positioned as a “go to” firm for similar future higher volume requirements.

Competition / Market:

The company is very profitable and could be substantially expanded without sacrificing margins. It primarily relies on contracts awarded from well-established repeat customers due to its performance record, production capabilities, competitive pricing and reputation within the marketplace.

Support & training:

The Principals are willing to provide a transition period to train an acquirer and insure a seamless transition. They would be willing to remain involved in the business on a longer term basis beyond the transition period.

Reasons for selling:

The Principals are approaching retirement age and are interested in pursuing an exit strategy for estate planning purposes.

Trading hours:

M-F

Financing available:

Seller financing available to qualified buyers.

Furniture / Fixtures value:

$750,000

Inventory / Stock value:

$75,000

Contact the seller

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