OFF-MARKET-CNC-Machining for Aerospace & High-Tech Industry for Sale

OFF-MARKET ‘Q3 2022

CNC-Machining for Aerospace & High-Tech Industry

Los Angeles, CA (Los Angeles County)

Seller Financing Available for qualified buyer

Asking Price: $2,975,000

Cash Flow: $619,000

Gross Revenue: $1,130,600

EBITDA: N/A

FF&E: TBD

Inventory: TBD

Established: 2010

Employees: 2 (approx. 8 – 1099s)

Established: 2010

Business Description:

This well-established CNC machining business, manufacturing parts for the aerospace industry specializes in custom fabrication of high-performance metal parts that require high-quality and close tolerances typical of aerospace and high-tech product components.

All work is performed as per customer-supplied specifications/drawings or based on reverse engineering. Customers are large aerospace component manufacturing companies, high technology manufacturing companies, aftermarket parts suppliers to aerospace OEMs, the military (mostly indirectly through other suppliers), and companies requiring prototype parts manufacturing and/or the fabrication of large tools & fixtures.

With its current equipment, workforce, industry reputation, and experience; the Company is an industry rarity in its ability to reverse-engineer almost any machined component. This ability brings much value to the business and additional opportunities to be capitalized on by a tech-savvy buyer.

Typical gross profit margin range of 60% to 90%, averaging around 75%
Revenue and Net Profit Growth rates averaging over 25% annually for 2018 through 2021

The Seller is committed to providing a “turn-key” experience to a Buyer, who will acquire its profitable operation along with its customers, know-how, great reputation, and truly exceptional growth potential.

Detailed Information:

Facilities: Two side-by-side industrial units centrally located in the San Fernando Valley. Each unit is 1,965 sq. ft. and rents for $2,100 per month. The Seller just secured a year’s lease with an option to renew.

Competition:

Competitors are few and far behind on quality and delivery capabilities. There are some lower-cost foreign and out-of-state fabrication and machine shops that thrive on low-margin, lower-quality, higher-volume contract machining jobs. However, the typical customer of this business put quality first and is willing to pay a high premium for the same.

Growth & Expansion:
– Commit to AS9100 Certification rather than remaining AS9100 compliant.
– Establish a website to showcase its quality of work and make the business processes easier.
– Hire commissioned salesperson(s) to seek new opportunities.

Financing:

Seller shall consider supplementing institutional financing for a well-qualified buyer depending on offered terms and conditions.

Support & Training:

To ensure a smooth transition and ongoing success for the buyer, the Seller will include four weeks of complimentary training, and up to six months support as a paid consultant.

Reason for Selling:

The Seller is looking to retire and spend more time with his grandchildren.