This Tiny Aerospace Business Makes $1M a Year

Bill D'Alessandro (0:00)

Hello, everyone, welcome back to Acquisitions Anonymous, brought to you by Acquisition Lab. This is the internet's number one podcast on buying, selling and operating small businesses. And today we have a really cool deal, it is a CNC shop in California with aerospace, government and prime contractor program contracts. It has 60% net margins, million bucks of SDE, a really cool business, regulated, little complicated. Overall, we really like it. We did identify some real potholes, kind of reading between the lines in the listing, but nothing that's not surmountable. So some really interesting, how do you structure around or diligence around some potential issues. I think you guys will really enjoy this episode of Acquisitions Anonymous. Well said, Acquisitions Anonymous.

Hello, another episode of Acquisitions Anonymous.

SPEAKER_2 (0:49)

We don't have 100% beers anymore.

Heather Endresen (0:51)

Thumbs downing on just the plus inventory line.

Mills Snell (0:56)

Buying a business might be the biggest financial decision of your life. I know it was for me. Most people try to make it alone. Cold emailing brokers, reading financials at midnight, guessing whether the numbers actually hold up.

Acquisition Lab exists so you don't have to. It's the leading community platform and fund backing serious vetted acquisition entrepreneurs with a standing board of advisors who've actually done this. People who will talk you out of a bad deal as fast as into a good one. The education and the deal search tools are free, open to everyone before anyone asks you for a dime. The easiest way to feel that is a roundtable. It's a free live conversation where you talk through what you're actually stuck on with other buyers and advisors who've actually been there. Nothing is recorded so it stays in the room.

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Bill D'Alessandro (2:47)

I always want to start these by saying happy Friday because it's Friday right now, but I have no idea when you are listening to this episode. Whatever day it is today for you, happy that day.

Jordan Flegel (2:58)

We're very happy.

Bill D'Alessandro (3:00)

It's Friday for us and we're all caffeinated. This is the early slot, so Heather's probably working her coffee at 7 AM in California.

Jordan Flegel (3:06)

I'm still working on it.

Bill D'Alessandro (3:07)

I need more. Jordan Flegel is with us from Acquisition Lab. How are you, Jordan?

Jordan Flegel (3:13)

I'm great. Thanks, Bill.

Bill D'Alessandro (3:15)

Where are you again?

Jordan Flegel (3:16)

Remind me. New York City at the moment.

Bill D'Alessandro (3:19)

Okay. You're East Coast, so it's 1045 for you. You're fully caffeinated and cranking.

Jordan Flegel (3:24)

Yeah. No, I woke up five minutes ago. But no excuse. Yeah.

Bill D'Alessandro (3:29)

I should be okay. This is the life of an acquisition entrepreneur, folks. You too can sleep in until 10 in the morning. You can do whatever you want when you own your own business. So speaking of owning your own business, we have a cool deal today, which is in Heather's backyard in California.

So who wants to read it? Heather found one with tons of information today. Heather, you want to read it since you brought it?

Heather Endresen (3:50)

Sure. I'm going to have to pull another tab over so I can see it bigger. Hold on one second. All right. It is Sanbiz-Bicel. It's in Orange County, California, and the title is Nadcap and As9100D, Aerospace CNC Manufacturer, 1.08 million annualized SDE. Asking price is 4.8 million. Gross revenue is 1,736,500, established only in 2021 It's kind of interesting.

1 million in recent equipment investment, 20 years plus experience scalable. This established-

Bill D'Alessandro (4:31)

You missed cash flow. There's making a million, I guess you said it in the title, but so they want four and a half times for a million bucks of cash flow that was started in 2021, five years.

Heather Endresen (4:39)

Right, and that's all very fascinating.