Hard Chrome Plating Company In West Michigan For Sale

Business description

The owner/seller of this 80 year old business located in the Upper Midwest has reached retirement age and wants to slow down after owning and operating this successful hard chrome plating operation for over 40 years. The business has historically recorded annual revenues between $1.4 million and $1.8 million. The business is tracking at a $1.5 million 2011 level with no sales/marketing efforts. The seller offers that there is ample opportunity to secure more business; however, he is “as busy as he wants to be” at this point in his life.

This technically sophisticated company has a listing price of $1.6 million which is supported by (a) machinery and equipment with a recent value in place appraisal of $500,000, (b) more than $150,000 of inventory, (c) annual seller’s discretionary earnings (SDE) that have averaged $440,000 four of the last five years (including 2010); and (d) very strong 2011 business conditions with a projected full year SDE exceeding $600,000.

The business is being offered with a real estate option (for $500,000) or with a favorable lease. The business, operating out of an attractive, well located, clean and environmentally friendly 30,000 square foot facility has a highly skilled, loyal, and non-union workforce. The business is not a supplier to the automobile industry. The products of this business are industrial in nature and are typically very large (up to 50 feet long, 12 inches in diameter, and weigh as much as 6,000 pounds). Few domestic suppliers can offer hard chrome plating on this length material which minimizes current competition and results in a prohibitive barrier to entry.

This business, priced at 3.6x historical SDE and 2.5x current SDE, offers a new owner/operator a unique chance to become a major player in a niche industry with both excellent current business conditions and an attractive industry outlook.

Property information

Real Estate:

Real Property Included

Business Operation

Reasons for selling:

Retirement

Trading hours:

2 shifts - 2nd shift is a partial

Employees:

18

Years established:

1969

Other information

Support & training:

Seller will provide training during an orderly transition. Seller is open to staying on in some capacity for up to 5 years.

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Seller will carry a meaningful note for a qualified buyer.

Furniture / Fixtures value:

$500,000 (included in the asking price)

Inventory / Stock value:

$150,000 (included in the asking price)