I currently own and operate Mechanics of Mayhem, an automotive restoration and repair business. I build engines and transmission for my customers and have some machine equipment, but nowhere near enough to be a full service machine shop. I currently have to farm a lot of machine processes out because of this. I have an opportunity to buy out a full service machine shop, because the gentleman is retiring and moving out of state. He doesn't want to take anything with him so I have made an agreement to purchase all his inventory and his machines. With this he will also make himself available to me for the next year to help with any questions I have. He also is going to spend a week with me and my team to learn the intricacies of the equipment and pick up some old timer knowledge. I have a shop lease lined up in an amazing location that we were lucky enough to be in the right place at the right time. I have already formed an LLC for the Machine shop. I will move the repair business and the machine shop under one roof that is about 12,000 sq. ft. and much space is needed because the current machine shop takes up 5,000sq. ft. This individual is also one of the few people who have to skill and knowledge to repair cracked cast iron engine blocks and cylinder heads. He is also willing to teach me how to do this and get me set up with the specialized welding equipment necessary. The deal comes with all his inventory software and billing systems. He has everything setup to make money with minimum labor charts and job costs. There is a short timeline on this deal as there are others that are interested in the equipment a piece at a time. Because I want to keep the soul and spirit of the business I am runner up. I have also been given access to their P & L's and in 2022 they did just under a Million in sales. Although the equipment is used and older, it is top notch and very well taken care of. It's nicer than 95% of all the comparable equipment out there and I have already spent time in the shop and ran the machines.
Although there are a few machine shops in the county, none of them are setup to do large diesel engines. The machine shop we are purchasing does a tremendous amount of large and small diesel. They draw business from 150 miles away. With the equipment that I am purchasing nothing would be outside our scope big or small.
Also in this deal is a parts store with over $100k in inventory, and all the equipment and office furniture of a 4 bay repair shop. The repair shop comes with 4 lifts, alignment rack, tire machines, trans and cooler flush machines, oil filter crusher, A/C Machines, Snap-on diagnostic equipment, brake lathes, and service writers desk.
We value all machines, tools and inventory well over $400K. This coupled with the support of the current owner and the relationship I have been able to build with him over the last few months makes this a once in a lifetime opportunity.
The shop we will be leasing is in an agriculturally rich area. My Current shop is off the beaten path, but with the work flow that never seems to slow down, and it being all word of mouth, I am confident the new location will allow us the room to grow on the repair side and continue to promote strong customer relationships through our fantastic customer service and workmanship. This expansion will also create much needed jobs and bring engine machine work back to an area that hasn't had a machinist for a number of years. I already have employees lined up to fill the job openings we are creating (such as technicians, office staff, service writer and another machinist), a plan for moving all the equipment (which is an hour away), and a lease agreement. We are projecting $60k in monthly sales based on the profit and loss provided and through our current monthly sales numbers in the repair shop. This is a fantastic opportunity for myself and my family. I hope that you can see the value in it and help fund our dream!
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