Advanced Hydraulic Cylinder Manufacturer

Jelenia Góra, Poland
Asking Price: $3,500,000
Automatic translations use Google Translate and may not be completely accurate.
Business For Sale Details
Listed on Sep 13, 2024

We are a family business that dates back to 1989. My father Krzysztof started from scratch and by 2009 had grown to employ 23 people.

At the beginning the company had a 500 sq m production hall and employed 3 people.

I joined to help him in 2010. At first I was responsible for the assembly and welding department and managed 6 people.

Over the next few years I faced many problems that I had to solve to improve profitability, I also became a production planner.

I managed to sign a contract with Eaton and introduce the PPAP production system, which was the highest level of production control at that time.

Soon after I convinced my father that ISO 9001:2009 was necessary and I introduced it successfully.
I won a contract with KGHM Polska Miedź S.A. and signed the first two-year contract worth USD 500,000 in 2012. I faced the highest possible level of durability of hydraulic cylinders: mining environment. We successfully delivered products for almost 8 years.
In 2015 I became the production director and board member and took over the management of 37 people, whom I hired to meet the growing order portfolio.
Everything looked good until 2020, where we managed to close 2019 with sales of 1.75 million USD and a profit of about 4,000,000 USD 20%. The company developed properly, successively, until February 2020, when the world heard about covid. This situation caused the closure of the market for our production, 5 months of pause and withdrawal of orders. All the collected funds went to survive 2020. In 2021, the market started to move, orders started to appear and we were without capital. This forced us to take out loans from banks to start production. It was about USD 400,000 (our liabilities as of today). Unfortunately, the number of orders was not so large and at the end of 2023 we managed to achieve sales of USD 1.1 million.

Taking into account the above history of our company, we are looking for an investor who will allow the company to develop its wings because the potential is huge and it is possible to generate profit. We have completed the initial stage of obtaining a wax concession and started preliminary talks with military companies. We were aiming for a concession for NATO, but the difficult financial situation forced us to discontinue the process.

Our company has two locations:
1. Assembly hall with a parts warehouse and a welding shop, 600 square meters, which is rented with a monthly fee of about USD 10,000.
2. Production hall 1000 square meters with a plot of land 5000 square meters (owned by the company) with a ready expansion project to 3500 square meters

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Financials (USD)

Asking Price $3,500,000

Cash Flow $400,000

Sales $1,700,000

Deal Terms

Represented by broker? Available On Request

Buyer Fee? Available On Request

Seller Financing? Available On Request

Willing to co-broke? Available On Request

Principals only? Available On Request

Franchise? Available On Request

Management will stay? Available On Request

Relocatable? Available On Request

Real Estate? Available On Request

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