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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