Metalworking machinery company with modern technologies

Basic information

The subject of the sale is a dynamic company dedicated mainly to machining, metalworking and construction. The company’s activities include the manufacture and repair of shafts, flanges, couplings, molds and many other products. The company has been operating on the market for 25 years and has a good reputation in the region. The owner runs his business as a self-employed, therefore the sale would take form of an asset deal.

Between 2013 and 2015, the company’s sales showed a rising trend, with a slight decline in 2016 due to the volatility of the number of orders. In 2018, revenues of CZK 28 million are expected.

The company is located in its own premises – a hall adapted to engineering production. In addition to this property, the company owns a chalet which is used as a dormitory for employees. The assets include machinery, fork-lift trucks and other smaller machines and tools. Valuable intangible assets certainly include licenses for design and machining software that are very costly. The added value of the company is in a framework agreements with customers, a database of customers, and last but not least, the name of the company and the references.

At present, 20 employees work in the company, with the production manager taking care of all work. It is therefore not necessary for the owner to run the day-to-day operation of the business. Employees remain in the business after the sale.

The company is able to operate without the owner, however, the owner is willing to help one year after the takeover and gradually pass over the company. The business plan for the development of the company is prepared. According to the owner, the company has a great potential for further growth and development. The price is a matter of discussion, the owner is ready to accept offers from serious candidates.

Tangible property

• CNC machines
• 2 x van (cabin + truck)
• all machinery
• 2x VZV, annealing furnace,
• bridge crane
• all material in stock
• tools, etc.

Intangible assets

• long-term contracts
• contracts with suppliers
• a good and stable work team
• website
• e-mail addresses, banners on advertising portals
• the name of the business
• know-how

Real estate

• Production hall, estimated value of the property CZK 20 million
• Cottage for staff accommodation

Employees

• Number of employees: 19 x
• Operations manager: 1x

Debt

• The amount of the loan is CZK 1.5 million
• Maturity: November 2018

Total annual sales

2017: CZK 20,000,000
2016: CZK 18,200,000
2015: CZK 24,800,000
2014: CZK 23,100,000
2013: CZK 19,800,000

Annual profit before tax and depreciation (EBITDA)

2017: CZK 3,400,000 (after optimization)
2016: CZK 1,300,000
2015: CZK 3 380 000
2014: CZK 3,284,000
2013: CZK 1,290,000

Other information

History: 25 years

Reason for sale: the owner is going to retire and has no successor

Legal form: self-employed person

Subject of sale: business (asset deal, not a share)