SouthCentral
Plastic
- Joined
- Mar 8, 2019
Hi,
I have been lurking on here for years and find a lot of knowledgeable tips from skilled people here but now I need some guidance from anyone who has gone through this. I have a shop which has been in business for 3.4 yrs. It's in Los Angeles California in case geographically it helps. I have 2 partners who are at the age of retirement. I'm in my mid 30's and have been approached on selling. Our machines are fairly new.
We primarily specialize in quick turn around R&D short run prototypes. As owners our work week consists of 12-20 hrs daily Monday thru Saturday and if necessary Sundays. I have never sold a turnkey cnc machining company before so I'm not quite sure if there is a formula to determine that. I've read on forum a couple people here who have but could not figure out how they came up with a number.
We are not a big shop but grew at a reasonable rate. Seems like 15-20% yearly growth. Total employees are 9 from which includes myself and 2 partners. We average about 1.4 mil in sales. Machinery should all be paid off in 2-3 yrs approximately if we keep going at the pace we are now.
Machinery consists of 2 cnc mills 4 axis 2015 & 2017, 2 cnc 5 axis mills 2015 & 2016, 1 cnc lathe with automatic bar feeder 2016, We have a older cnc lathe which we only use for quick second ops but not much at all. EDM as well which never gets used. As well as support machinery 2 manual lathes 1 toolroom lathe, 3 manual mills. All in good functioning condition. Same thing with CNC machines all get PM"d yearly so are always in very good shape. I forgot about Quality Dept. We have 1 CMM with indexing head (5 axis) 2015 also touch probe arm with scanning capability 2017.
I love this place but my partners seem to be leaning towards retirement which I totally understand. I put my all into this place so it feels good knowing we have potential buyers except that they are asking for a price and I'm not sure what is a fair an honest price. Considering the info I provided any ballpark idea would be appreciated. Any info from someone who has dealt with this would be much appreciated.
Thank You
OAG
I have been lurking on here for years and find a lot of knowledgeable tips from skilled people here but now I need some guidance from anyone who has gone through this. I have a shop which has been in business for 3.4 yrs. It's in Los Angeles California in case geographically it helps. I have 2 partners who are at the age of retirement. I'm in my mid 30's and have been approached on selling. Our machines are fairly new.
We primarily specialize in quick turn around R&D short run prototypes. As owners our work week consists of 12-20 hrs daily Monday thru Saturday and if necessary Sundays. I have never sold a turnkey cnc machining company before so I'm not quite sure if there is a formula to determine that. I've read on forum a couple people here who have but could not figure out how they came up with a number.
We are not a big shop but grew at a reasonable rate. Seems like 15-20% yearly growth. Total employees are 9 from which includes myself and 2 partners. We average about 1.4 mil in sales. Machinery should all be paid off in 2-3 yrs approximately if we keep going at the pace we are now.
Machinery consists of 2 cnc mills 4 axis 2015 & 2017, 2 cnc 5 axis mills 2015 & 2016, 1 cnc lathe with automatic bar feeder 2016, We have a older cnc lathe which we only use for quick second ops but not much at all. EDM as well which never gets used. As well as support machinery 2 manual lathes 1 toolroom lathe, 3 manual mills. All in good functioning condition. Same thing with CNC machines all get PM"d yearly so are always in very good shape. I forgot about Quality Dept. We have 1 CMM with indexing head (5 axis) 2015 also touch probe arm with scanning capability 2017.
I love this place but my partners seem to be leaning towards retirement which I totally understand. I put my all into this place so it feels good knowing we have potential buyers except that they are asking for a price and I'm not sure what is a fair an honest price. Considering the info I provided any ballpark idea would be appreciated. Any info from someone who has dealt with this would be much appreciated.
Thank You
OAG