Manf. of Precision Cutting Tools for Aerospace

Los Angeles, CA
Los Angeles County


Asking Price: Annual Revenue:
$1,550,000 $3,944,425

Manufacturing: Metal Products


Request More Information
Contact the Seller

RE: Manf. of Precision Cutting Tools for Aerospace Broker: Julian Solomons
License #: 01312480

Quick Facts

Asking Price: $1,550,000
Annual Revenue: $3,944,425
Net Profit: $323,864
Cash Flow: $323,864
Total Debt: Not Disclosed
FF&E: $1,800,000
Real Estate: Not Disclosed
Year Established: 1968
Employees: 42
BBN Listing #: 495731351
Broker Reference #: 20190512/03

Email, Print & Share

Request More Information
Contact the Seller


Business Overview:

The Company was established in 1968, and is recognized in the industry as one of the leading manufacturers of high quality, precision tungsten carbide specialized cutting tools for the aerospace industry. Comparing these cutting tools to the type you would find in Home Depot, is like comparing an IBM mainframe to a calculator! These products are specialized cutting tools made to very close tolerances, and in many cases have unique cutting properties. The Company has a full line of standard tools, but 80% of their production are custom tools as specified by their customers.

Customers include the major Tier-1 aerospace firms – Boeing, Northrup, Lockheed and so on, and the major distributors nationwide that supply the smaller OEMs and machine shops. They have one distributor in Germany that supplies the EU aerospace market.

The Company has a 40+ highly experienced workforce, and a superb manufacturing plant in Los Angeles, California (ISO 9001 certified). Revenues and margins have varied over the years, and both have been recovering since 2017 after a five year hiatus because of the slowdown in the F-35 and 787 programs. 2018 revenues were $3.9 million – a 50% increase over 2017, and margins improved to a blended 27% - better than 2017 at 23%, but still in need of further improvement. 2019 is on track to gross over $4 million, with a margin closer to, or better than 30%. (GM for the first six months of fiscal 2019 was 29.39%).

There has not been any outbound sales or marketing effort for well over ten years.

The opportunity is to recalibrate the pricing and estimating function, get labor costs under control, and to reinvigorate the sales and marketing process.

The owner is being extremely reasonable in seeking offers in excess of $1.55 million for the entire enterprise, which will include all the assets of the business and “Normal Working Capital”. Normal Working Capital is defined and estimated at $400,000 in Accounts Receivable, $650K in Inventory (Raw Materials, WIP and Finished Goods) less $50K in Accounts Payable. Cash is excluded. There would be an up/down adjustment at close for any variations from these estimates. There is no other debt. The original cost of the machinery and equipment was $3.25 million, and it is in first class working order.

The real estate (land and buildings) is also available for purchase at market value, which is estimated at $2.25 million. SBA financing for both the business and real estate are available to suitable buyers – please see Appendix C at end for full details.
An online video tour and downloadable “book” are available on application.

To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.

Property Features and Assets:

Factory and Offices in two buildings of 11,900 square feet on 3/4 acre. Ample room for parking, etc.

Market Competition and Expansion:

See "book" and video tour for full details.

Reason for Selling:

Owner is 89.

Additional Details:

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

Documents:

Relevant Links:

Request More Information
Contact the Seller



BusinessBroker.net is one of the largest business for sale marketplaces in the world that connects tens-of-thousands of business buyers and sellers every month. Sell a Business Online or if you’re a broker or a commercial agent sign up for a Business Broker Membership today!