This 45 year old structural steel fabricator has averaged $9 Million in sales the past two years with a cash flow average of approximately $1.9 Million. They are contemplating adding a $250,000 Beam Line to get more mass production. All work is done on one shift. They have been limited in space requirements in the past but just took on an adjacent building allowing them much more space.
The second generation owner has young children and wants to spend more time with his family. He will consider staying with the buyer for a period of time in a reduced role in the company. He currently wears many of the hats, including much of the customer contact. However there are several employees that assist him with customer contact and quoting jobs.
There are about 400 current customers with typical jobs ranging from $50k to $150k but they do get one or two jobs per year for about $1.5M The total number of employees is approx. 38 but they do sub-contract some work for installations who are dedicated to do the work for this company. Most production labor averages $17 per hour.
There is no formal asking price but the owner has expectations of about a 4.5 to 5 multiple. He is receptive to all fair and reasonable offers.