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INTRODUCTION of Eatonia Saskatchewan, providing a variety of services such as machining, fabricating, and equipment sales and service. It is owned and operated by Jerry and Bonnie Jurgens. After 45 years as a machinist and nearly 35 years as a businessman, Jerry is seeking a suitable candidate to purchase the business. Unlike starting a new business with an unproven reputation in an unproven market, the opportunity to purchase Eatonia Industries offers you an established customer base along with a fully equipped building and property in a thriving prairie community. Eatonia Industries is an essential part of this community and provides you with an opportunity to step in and continue to meet the area's machining, fabricating, and equipment needs. The sale of Eatonia Industries includes:
COMPANY VISION and welding and manufacturing services to the surrounding oil, agricultural, and rural community. EATONIA MARKET These operations rely on Jerry and his crew for equipment and parts, labour services, and primary repair and installation services. Additional clients are composed of residential, commercial, and governmental entities that place special manufacturing orders covering a broad spectrum of projects. Revenue is broken down as follows:
only does this cover Eatonia, but also encompasses most of the neighboring towns. While the neighboring town of Kindersley has similar shops, Eatonia Industries successfully competes with these shops by offering higher quality workmanship and more responsive service. People recognize quality craftsmanship and service when it is provided and Eatonia Industries has customers who travel from as far away as Scepter and Rosetown in Saskatchewan; and Oyen and Sibbald in Alberta. Additionally, the Hutterite colonies of Eatonia and Glidden turn to Jerry and his team whenever they have needs that they cannot fulfill themselves. Jerry has worked hard to successfully maintain a reputation of high-quality fair-minded business that extends beyond the local geographical region. KEY PEOPLE
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ASSETS
The Equipment Eatonia Industries is a fully equipped machine shop containing a career's worth of meticulously maintained, top-quality equipment and tools. The following is a partial list of equipment that will transfer to the new owners:
• Jerry
and Bonnie have computerized the company's inventory, billing, and
bookkeeping needs.
•Vehicles
Other assets include resale inventory (nuts, bolts, screws, seals, cutting parts, welding supplies, etc.) which will be tallied in the final closing costs, as the inventory varies in value from $75,000 to $95,000 depending on the time of the year. Augers taken in trade are included in the resale inventory and, as a purchase option, the wholly owned augers may be factored out of the final purchase price assuming they are held on consignment by the new owner for the existing owners. FINANCIAL INFORMATION its profitability is influenced by the success or failure of the local agriculture industry, it has remained profitable even during two to three years of bad crops. The last two years are examples of less favorable agricultural cycles, and even so, the company maintained nearly an average 31% profit margin for the two-year period. Table 1 shows this trend along with the financial information. Owner Salaries 2003, 2004 and 2005 respectively. The remainder of the profit has gone to paying down long-term debts and replenishing store inventory. In the last two years, the overall net worth of the business has increased a considerable 30%. Return On Investment significantly faster relative to other businesses in the farming industry. Eatonia Industries has a constant track record of being very profitable, has a positive net worth, provides an essential service to the local community and has little-to-no competition. The current owners' status in the community as well their positions as directors of the Chamber of Commerce and the Mayor of Eatonia, ensure a smooth transition for the new owner. Given the asking price of $300,000 and assuming 100% financing, a new owner could realize an immediate ROI, drawing a decent salary and having the business be debt-free in 7 years with a moderately high loan repayment (loan would assume 7 years financing at 5% APR). The loan repayment would require about 50K per year and would allow for the owner a salary of at least $32,000 (based on the last 3 years financials). Relaxing the repayment of the financing to 10 years or even putting 10%-15% down in equity and one could live quite comfortably in Eatonia while the business becomes debt-free. Financing Opportunities financing process. Loans will be pre-approved for the accepted buyer with the appropriate level of credit standing.
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ABOUT THE COMMUNITY:
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