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This 15 year old DFW company is a distributor of high quality fasteners, electronic components and cable assemblies for the aerospace and defense industries. The company has a proven track record supported by its longstanding reputation with its customers. With its broad range of products, the company’s marketing efforts focus on targeting aircraft manufacturers and aerospace and defense contractors throughout the United States. While the company has experienced a decline in revenue in recent years because of the reduction in defense spending, it expects revenues to rebound under the new administration and the pending 2017 defense budget. Last year, the company’s total revenue was $3,001,029 with an adjusted EBITDA of $120,000. With a large customer base and solid reputation, the company continues to attract new customers while maintaining its reputation with existing ones. An opportunity exists to capture a greater share of the aerospace and defense markets. Currently, 80% to 90% of the company’s revenue derives from the sale of parts to various contracting entities and only 10 to 20% of the company’s revenue derives from the sale of parts to other parts distributors.
The owner believes the company’s products and customer base represent significant growth opportunities for an industry buyer. Ideally, potential buyers should have an existing distribution operation and/or sales organization, which already has a presence with, or needs access to, the company’s existing customer base. Additionally, since the business is not location sensitive, the buyer can eliminate a significant amount of fixed overhead and start-up costs by relocating to their facility. It is important to note that an individual could purchase the company. However, individual buyers should have direct industry experience.
The company operates from a leased 15,000-square foot facility, with 6,000-square feet used for office space, and the remaining 9,000-square feet used for warehouse and production.
Develop a plan to expand reach in aerospace and defense industries. Include new markets.
While extended transitioning is negotiable, standard 3-6 month transition is preferred. Employees will most likely stay on after the sale.
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