Price: $1,225,000
Location: Arizona
Industry: Manufacturing (Aerospace)
Listing ID: 3025
Listing Description
Decades long history of success in growing market
The Company is a 30+ year old manufacturing business in Arizona supplying the aerospace industry with parts manufactured to specified tolerances significantly tighter than required for the general commercial market. The Company is a supplier to Tier 1 OEMs, their subcontractors and third-party providers, and to aftermarket suppliers that hold Parts Manufacturing Approval (PMA) from the Federal Aviation Administration (FAA.) The Company manufactures its products based on customer supplied designs, drawings and specifications and does not provide design services. The Company holds AS9100 and NADCAP certifications as well as various customer specific manufacturing approvals.
The Company supplies OEMs for new products and the spare parts portion of the market, servicing the ongoing maintenance requirements for long-lived aerospace equipment, where parts are required to be replaced after specified amounts of flight time. The market is characterized by stringent quality standards and regulatory requirements related to safety, material quality, performance, and record keeping, among others, which creates barriers to entry for new entrants to the market.
This business is best suited for a strategic buyer for product and customer expansion within the aerospace industry or an experienced industry executive capable of assuming the day to day executive management of this manufacturing business. Interested parties will need to demonstrate professional and financial suitability prior to signing an NDA.
The Purchase Price includes up to $275,000 in operating working capital (net A/R less A/P).
The Sales Revenue and Cash Flow (SDE) are calculated based on the twelve months ending 6/30/24.
All listing and financial information to be verified by buyer during due diligence.
Listing Details
Total Sales: $2,100,000
Cash Flow: $398,000
Reason For Sale:
Owner is looking to retire.
Training & Support:
4 weeks included in purchase price. Current owner may be open to further transition support for a limited time subject to a mutually acceptable employment or consulting agreement.
Location
Facilities Information:
Approximately 21,000 sq. ft. office/warehouse/manufacturing under a lease with unaffiliated landlord.
Summary
Potential Growth:
The Company’s long history and its well-established customer relationships provide a solid foundation for future growth opportunities including expanding its existing relationships by pursuing opportunities to manufacture additional parts for existing customers, enhancing its marketing efforts to target affiliates of current customers as well as new customers and the hiring of additional personnel to increase existing capacity and capabilities to take on new products.