What's your take on this deal?



Asking Price: $6,000,000 ($4M business + $2M RE)

Annual Revenue: $4,900,000

SDE: $1,150,000

Real Estate Value: $2,000,000 (included)

Equipment & Fixtures: $2,000,000

Inventory: $800,000 (not included in the price)

Working Capital: $500,000


Good:

10 minutes from home

50+ years in operation

Diverse Customer Base

Stable revenue and earnings

Long-Term Employees expected to stay onboard


Potential Risks:

The seller is actively involved in sales

High inventory and working capital requirements

Cost of capital will put extensive pressure on earnings

Hiring fabrication and machining specialists may be a challenge

Manufacturing can be affected by market downturns, supply chain issues, or industry-specific challenges.

While my background in sales and marketing can help with growth, my lack of manufacturing background could pose a greater risk