The Company is a reputed manufacturer in Arizona specializing in the design, assembly, service, programming and certification of flow rate calibration equipment.
The Company has a proven track record, supported by 21 years of ongoing business. With its broad range of products and services, the Company’s marketing efforts focus on targeting the U.S. Department of Defense, NASA, major aerospace-defense OEMs like Rolls Royce, and industrial customers like Donaldson, Turbines, Inc etc. worldwide.
The Company’s main products are primary and secondary flow rate calibrators, and the software operating system monitoring their functions. The Company operates as a home-based business where most electronic components designed and assembled, as well as management functions are performed. Additional mechanical assembly is out-sourced to a local machine shop. Offering these products and services requires a facility, software, tools, equipment, an engineer and two contract personnel with industry experience.
According to the Owner, revenues decreased over the past two years due to federal contract cycles; however, this trend has since reversed. The Company has $1,867,000 in projected revenue booked for June 2019 through May of 2020, estimating a $650,000 in Adjusted EBITDA projected for the next 12 months.
With a well-recognized 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 following markets:
- Defense: Currently, 90% of the Company’s revenue derives from the U.S. Department of Defense market.
- Aerospace: Currently, 8% of the Company’s revenue derives the aerospace market.
- Commercial: Currently, 2% of the Company’s revenue derives from other commercial markets.
According to the Owner, opportunities to expand in the underserved markets such as Commercial and Aerospace are available. The Owner is seeking to sell the assets of the corporation preferably to a strategic buyer that considers the Company’s products and services and/or customer base complementary to their own. The Owner is willing to facilitate a smooth transition by remaining for up to three months in his current management role. The Owner will consider offers to purchase the Company from individual buyers.
Note: TechnologyPark.com (parent company of LaboratoryForSale.com) is marketing this opportunity in a co-broking partnership with the listing broker.