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Wednesday, August 24, 2016

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Structural Steel Fabrication & Machine Shop

Located in the Okanagan Valley of British Columbia, Canada, this long established structural steel manufacturer and machine shop business for sale has continued to enjoy an excellent reputation for high quality workmanship. Serving over 200 regular and repeat customers, this fabrication company employs the best estimator in B.C. This structural steel business is further known within the industry as a reliable and superior provider of quality structural steel, and maintains excellent relationships with a long list of general contractors. With contracts typically ranging from approximately $100K to $4M, the business enjoys high profitability in the industry's peak times. The company's team of experienced journeymen are Red Seal Certified welding and steel fabricators or registered apprentices working towards the certification, which represents the standard for excellence in Canada. Furthermore, in addition to steel fabricating, the business offers shop job repairs in its fully equipped machine shop as well as custom steel or aluminum and fasteners to retail customers. This long established all season business is almost always invited to bid on any applicable work conducted in the region. There are significant growth opportunities available if the new owner pursued other relevant industry sectors. It is a turnkey operation with all the hard assets included in the purchase price. With the current owner seeking retirement, this steel fabrication and machine shop business offers a fantastic opportunity for a new owner and is ready to be taken to the next level. The free cash flow of the business is over $300,000 per year. The business value including all fixed assets and goodwill is $875,000 with a payback of 3.3 years. Since the seller is selling the operational balance sheet of the business which includes the normal required working capital of $225,000 (this includes $175,000 of inventory), the total asking price is $1,100,000.

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