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Custom Heat Treating Equipment Manufacturing and Services
NCListing DetailsOffice ID: FLAME1
Status: Active
Listing Broker: Jeff Snell, CM&AP, M&AMI, LCBI, ABI
Listing Price: $525,000
Gross Revenue: $451,640
Cash Flow: $158,164
FF&E Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:
Seller will participate in a portion of seller financing if required by the SBA, which is not anticipated.
Reason for Sale:
True retirement.
Training:
Seller will provide up to 80 hours of transition assistance included in the purchase price.  Seller is open to longer term transition and/or consulting at fair market rates.
OperationsLast Acquired: 1995
Form of Ownership: S Corp
Employees (full-time): 2
Employees (contractors): 1
Managers: 1
Business Hours: M-F 7am-4pm
Summary
Business Description:
With an impressive 35% average net profit this business has multiple streams of income derived from the design, engineering and fabrication of custom computer controlled heat treating and metal tempering machines, outsourced heat treating of materials provided by clients as diverse as small machine shops to multi-billion dollar global manufacturers for all manner of metallic parts as well as service, repair, maintenance and national and international relocation of client owned equipment. One differentiator of this business is the ability to design, engineer and build complete custom systems as well as custom sub-components such as  torches, flame heads, control cabinets or quench solutions under a single roof to meet clients exacting requirements. A spinner machine, which is required for treatment of client provided materials is included in the sale with a stated value of $95,000.  However, as of fall 2021 this machine has been sold.  Buyer may choose to have seller fabricate a new spinner tool or at their option reduce the purchase price by $95,000. NOTE: All provided financial information is an equally rated 12 month average of the trailing 5 years.
A Non-Disclosure Agreement and Working with Real Estate Agents Disclosure will be required prior to release of confidential client information.
 

Historical Summary:
This business was established several decades ago out of state and was subsequently relocated to central North Carolina.  The company has built a global reputation for quality and cost efficiency.
Owner Qualifications:
Buyer should be comfortable with long sales cycles and have engineering experience with heat or flame treating techniques, technologies and uses.  General administrative, marketing, supply chain management experience a plus or may be hired in or outsourced.  
Competition:
There is no direct competition since the 1990's when a foreign competitor went out of business.  Localized hardening is a competing technology using induction, but costs approximately double and is not as cost effective for low runs and/or large parts.  There is minimal competition from DIY.
Potential Growth:
Hiring a salesperson or retaining a outsourced commission based sales team or hiring shop workers who can manufacture while the owner is selling.  Put an operating line of credit that allows financing options. Include a new spinning machine in the purchase and formally launch and market outsourced flame hardening / tempering as a service.
LocationType of Location: Warehouse
Monthly Rent: $3,000
Square Footage: 4000
Facilities:

The business is currently located in leased commercial space and could be moved if desired. Historical rent was higher due to additional space being leased.  Go forward rent is ~$3,000 per month between two leases with unmatched expirations. If the buyer were to relocate the business a higher pressure gas meter (20 PSI) that is common in industrial parks.


Last Updated: Oct 7, 2021 / 11:06 AM
Financial Information Current As Of: Sep 8, 2021 / 10:40 AM