Industrial Motor & Pump Manufacture, Repair & Sale

Not Disclosed, CA

San Francisco Bay Metro Area


Asking Price: Annual Revenue:
$1,795,000 $1,980,000

Manufacturing: Machinery


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RE: Industrial Motor & Pump Manufacture, Repair & Sale Broker: Tim Cunha
License #: 01919755

Quick Facts

Asking Price: $1,795,000
Annual Revenue: $1,980,000
Net Profit: $380,000
Cash Flow: Not Disclosed
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: Not Disclosed
Employees: Not Disclosed
BBN Listing #: 592739224
Broker Reference #: 5317

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Business Overview:

Located in the Silicon Valley vicinity of the San Francisco Bay Area, this business repairs, services, distributes, and manufactures electric motors, pumps, and related products and replacement parts, serving northern California for five decades.
The business is profitable and highly-respected, serving hundreds of regular recurring industrial and governmental customers, with over 1,000 customers in the database.
The staff has many decades of experience and expertise. The principal owner/CEO of the business is available for a smooth and orderly transition for several months—or more, at the option of the new owner. The employees and managers do not know that a sale is contemplated, and the seller has every reason to believe that all would stay on at the new owner’s option.
They operate from a leased 6,000+/- square feet building with another 1,000 square feet outside, plus parking. Total rent is $6,800 plus CAM-NNN of about $550. The lease has another five years to run, with a landlord interested in long-term tenants.
Services include repair, rewinding, and rebalancing, and rebuilding of motors and pumps up to 1000 HP. Scores of prominent product lines are offered (to be disclosed on signing an NDA).
The owners of this business want to keep the potential sale highly confidential. They are willing to share complete financial data for several years—tax returns, bank statements, P&L, balance sheet, customer records, etc.—but only after obtaining an NDA and basic evidence of financial resources from a prospective buyer, engaging in a discussion with the seller and the broker, and the buyer showing positive evidence of serious interest in an acquisition.
Gross Sales Revenues: 2018, $1,325,852; 2017, $1,846,980; 2016, $1,727,517; 2015, $1,375,351; Jan-March 2018 (Q1), $344,060; Jan-March 2019 (Q1), $506,448, a 47.2% year-over-year increase. While 2018 sales were uncustomarily low, based on current trends and pending projects, management is confident that 2019 sales will exceed $2,000,000.
Seller’s Discretionary Earnings (“SDE”) for one owner-operator are estimated to be $380,000 (about 20% of gross). During 2018, some changes were made in sales operations and distributorships, which may affect the actual SDE for 2018. The actual SDE for 2018 will be calculated based on the 2018 P&L and tax return.
The Transaction: The business is offered for total price of $1,795,000 (approximately 1x annual sales). This is for the entire business— tangible assets, e.g. equipment, machinery, furniture, fixtures, etc.; website, trademark, logo, trade name, telephone number, methods of operation, vendor/supplier resources, customer lists, etc.; and good will. It does not include cash, accounts payable, accounts receivable, or corporate entity. Inventory (approx. $20,000) is extra at actual cost. Some seller financing may be available for a qualified buyer with adequate collateral.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.

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Reason for Selling:

Retiring

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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