This business was established over 50 years ago and the current majority owner and MD has been running the business for around 35 years, together with his wife in recent years. This is a retirement sale.
The Company provides Hard Chrome and other plating services to mainly defence, aerospace and motor sport customers. The business has a valuable, secret process for a particular plating application and this is one of the factors which gives it an edge over competitors.
The workforce has significant accumulated experience and knowledge. The MD is happy to stay on for up to a year to assist with handover and his wife, who handles all of the administrative and financial aspects of the operation, can stay on for as long as required.
The business occupies a factory in the Midlands extending to some 418 sq m. It is well equipped including stand-by tanks in case of failure. The premises are owned by the vendors and their preference is to sell these as well.
The Company has a small share of a very large surface coatings market so there is potential to grow the business. The factory could probably cope with volumes some 50% higher than current.
The business has been consistently profitable for many years. In the current year, sales are expected to exceed £450k, generating an adjusted EBITDA of c£85k (Profit Before Owners’ Drawings of c £145k). The Balance Sheet at the last year end had Net Assets of c £70k on a debt free, cash free basis.
The Guide Price for 100% of the shares is £295,000. The premises are available at market value (£275,000 in 2016). The business will be sold debt free, cash free albeit the purchaser will be expected to purchase the surplus cash in the balance sheet at completion.