BUSINESS OVERVIEW

Empire Business Associates, a Northeast Ohio merger and acquisition firm, represents the owner of a hydraulics systems design and repair company that is available for acquisition. Founded in 1999, the company enjoys an excellent reputation as a high quality source for fluid power components, systems and service.

This business represents an ideal opportunity for the owner of a hydraulic or related company to add an established product and service line that will provide steady cash flow and a predictable income stream. The business can be easily rolled into an existing operation.

The company’s main product lines and sales contribution are hydraulic pump/valve repair (40%), hydraulic cylinder repair (30%), hose repair/replacement (7-8%), design/engineering services (15%) and miscellaneous (6-8%).

The company has a base of approximately 200 customers throughout Ohio, Michigan, Pennsylvania and Wisconsin. They have based the business on offering customers, especially the engineering and maintenance departments of manufacturing companies, a service that will satisfy all their fluid power needs. This includes repair of hydraulic components, troubleshooting service calls, design applications and manufacturing new complete fluid power systems. Training seminars are offered to discuss ways to improve existing hydraulic systems, how to design efficient fluid power systems, and preventive maintenance considerations.

The company’s marketing methods have been fairly limited and consist mainly of word-of-mouth, referrals, the Internet, and repeat business. The owner believes that an increased sales and marketing effort could substantially increase sales and profits.

INVESTMENT CONSIDERATIONS

There are numerous benefits for the buyer who purchases this well-established business, including:

• The company has been in business for eleven years and enjoys an excellent reputation within the industry.
• The company has a customer base of approximately 200 customers, with a significant percentage of repeat sales.
• The company’s sales are not significantly impacted by the economy’s ups and downs, as the company sells to both OEM and Aftermarket accounts.
• The company’s price-competitive product and service line is well known and highly regarded within the targeted sales area.
• The potential market for the company’s services is significant, as the industry is fragmented and the company’s current market share is very small.
• The company’s marketing efforts have been extremely limited, so even a modest sales and marketing effort could result in increased sales and profits for the new owner.
• The business can be easily absorbed into an existing operation with excess capacity or as a second shift, and will provide the buyer with a steady income stream.

FINANCIAL INFORMATION FOR A STRATEGIC BUYER

REASON FOR SALE & TRANSITION PLAN

The owner wishes to retire from the day-to-day running of the business, as he has certain health issues. He is willing to remain after the sale of the company, as deemed necessary, for a reasonable period of time during which an orderly transition between owners can take place. This includes the divulgence of any and all proprietary knowledge necessary to operate the business and preparation of the company’s customers, vendors, and employees to facilitate a smooth transition. He is committed to helping the new owner in every way possible to succeed, and is willing to remain available on a sales and consultancy basis after the transition period, should there be interest on the part of the new owner.

PRICE & TERMS

The owner is willing to sell his customer list from the business. He would be willing to sell the customer list at 10% of the sales received for the next three years. You only pay for the sales after you receive the payment from the customer. The other assets of the business: office equipment, production machinery and fixtures are also available at market value if needed. He has a $100,000 in inventory that you have an option to take on consignment.