Production of chip removal tools

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Key Metrics Company

Fatturato ultimo anno
2.800.000
Approximate Sale Price
1.800.000
Utile Aziendale ultimo anno
250.000
Ref Number
REF
1.061

Business Description

Historic manufacturing company active for more than 27 years in the production, sharpening and marketing of cutting tools, with a strong presence in the metalworking sector and an extremely loyal customer base. The company offers a rare combination of technical know-how, high value-added in-house production, proprietary brands and above-market margins.
2.8M€ turnover - High margin - 27 years in business

Key Points

  • Turnover 2024: €2.800.000
  • Pre-tax profit 2024: €250.000
  • Projected turnover 2025: €2,500,000 (expected profit €300-400k)
  • Active clients: over 1,500
  • Employees: 19 + 6 agents
  • No debt - high available liquidity
  • Product Warehouse: €220.000
  • Production assets: ~€120.000
  • Estimated liquidity: ~€500.000

Activities and business model

The company operates with an integrated model consisting of:

1. In-house production

  • 10 state-of-the-art CNC machines (Walter and others).
  • Annual production of approx. 50,000 pieces between milling cutters, cylindrical tools and custom products.
  • Professional sharpening 600-700k/year (30% of turnover) with high margins.

2. Marketing under proprietary trademarks

  • Technical catalog with proprietary private labels.
  • Registered trademarks with estimated value €400k-500k each.
  • No dependence on customers/suppliers (the main one weighs 1%).
  • 6,000-7,000 shipments/year → distributed turnover.

3. Established business network

  • 4 inside salespeople + 2 agents in the territory.
  • Owner with strong sales role on strategic clients.
  • Advanced marketing: technical YouTube, 90+ page magazine, specialized content, qualified telemarketing.

Operational structure

  • Personal: production, sharpening, warehouse, logistics, administration, sales.
  • Procedures: Complete organizational chart, updated job descriptions, KPIs by department.
  • Certifications: ISO active for more than 13 years.
  • Immovable: shed 1,000 sq m for rent at €700/month (favorable terms).

Financial situation

  • Zero bank debt
  • Fido available: 100,000 never used
  • Liquidity: ~€500.000
  • Advance supplier payments with discount 3%
  • Sound trade receivables (rotation 30-90 days)

Reason for sale

Owner (65 years old) intends to plan for generational transition and gradually reduce his operational involvement. Available to remain 1-2 years for shadowing, customer transition, technical direction and sales support.

Evaluation and application

Based on:
  • economic and financial performance
  • productive assets
  • know-how
  • proprietary trademarks
  • liquidity (~500k)
  • margins higher than the industry
Minimum request: €1,800,000

Because it is a unique opportunity

  • Margins double those of international competitors.
  • In-house production with highly specialized know-how.
  • Wide and totally diverse clientele.
  • Proprietary trademarks with technical recognition.
  • Stable sector with high technological barriers.
  • Immediate scalability on the business and marketing side.
  • High liquidity and total absence of debt.

Ad reference

Ref. #1061

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