Powder Coating Biz - High Quality = High Margins

Los Angeles, CA
Los Angeles County

Asking Price: Annual Revenue:
$779,000 $795,951

Manufacturing: Furniture, Fixtures Manufacturing

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RE: Powder Coating Biz - High Quality = High Margins Broker: Rick Carlson
License #: 01820673
Owner Financing is Available!
If the price and deal structure is right.

Quick Facts

Asking Price: $779,000
Annual Revenue: $795,951
Net Profit: Not Disclosed
Cash Flow: $194,425
Total Debt: Not Disclosed
FF&E: $800,000
Real Estate: Not Disclosed
Year Established: 1984
Employees: 11
BBN Listing #: 186927574
Broker Reference #: 815 MFG

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Business Overview:

The Company has grown thanks to its high-quality work, that centers around providing expert powder coating for select hardware manufacturers.

This 35-year-old business has built a strong customer base, developed a reputation for consistently high-quality, reliable services at attractive prices. Approximately 300 customers served in the past 5 years.

The Company has long-established relationships with top raw material vendors giving them inside information, years of knowledge and excellent bargaining power. Raw materials inventory requirements are very low. But initial space and equipment are not, making this a high-barrier entry business for those thinking about starting from scratch.

However, as an essentially service-oriented business, margins are attractive and grow each year.

Detailed Information

Core competence is - quality, cost, delivery. The process for each order includes:

Pre-treatment=>pre-inspection=>apply powder coatings =>final inspection & packaging.

AQMD license is available and transferrable.

Inventory is included in price.

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:

Facilities: The entire building is approximately 30,000 square feet. The business leases a portion of the building to sub-tenants, so the effective rent is only $7,118 per month. This provides some flexibility for future expansion without relocation.

Market Competition and Expansion:

Competition: There is competition from local providers, but top competitors have their own specialties and usually different customers, and this Company is differentiated because of their focus on quality, cost and delivery, as well as long term relationship with customers/suppliers. Also, the industry has high barrier to entry due to the high initial capital investment to meet equipment requirements. Growth & Expansion: Sellers are not savvy marketers. This becomes a growth/expansion opportunity if a new owner can increase marketing efforts overall and master online marketing opportunities as well as establish/grow social media platforms.

Reason for Selling:

Retirement. The Sellers are willing to comply with

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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