Deal Flow: 3D Printing Business

A Hidden Gem in a World of Opportunities for the Solo ETA?

ETA good! Solopreneur ETA even better? You’ve found it: the perfect 3D printing business. It’s got everything. A history of crushing it, profitability out the wazoo, and shiny, state-of-the-art equipment. In fact, it’s got $460,086 in Seller’s Discretionary Earnings (SDE). It seems like a reasonable price for something with massive potential.

But wait — before you get too excited and start drafting your “I’m a business owner now” speech to tell your friends, let’s hit pause for a second. Because just like that time you thought you could handle a big bowl of spicy chili and ended up calling in sick the next day, this opportunity has some hidden pitfalls that could trip you up:

The Owner Problem
First up, this business depends a lot on the current owner. Like, a lot. If they’re the mastermind behind every little decision, that could mean a bumpy transition. Imagine you’re trying to take the wheel of a car that’s been driven by someone who knows the roads like the back of their hand, but you’ve never even sat in the driver’s seat before. That could get sketchy real quick. You’ll need to think about how to deal with the owner’s absence and whether you have the skills to pick up the slack. But hey, you’re smart, right? You’ve got this. Still, something to think about.

The Scaling Dilemma
Next up: scalability. The business is doing well, but it could do even better. And that’s where you come in! But scaling a 3D printing business is not like hitting “double speed” on your video game controller. It’s a whole thing. You’ll need to figure out how to grow the business — whether it’s adding more clients, ramping up production, or expanding your operations. It’s not going to be easy, and it’s going to require serious thinking, planning, and probably hiring people. Speaking of hiring…

The Workforce and Competition Crunch
The 3D printing market? It’s competitive. There’s a lot going on in that space, and everyone’s trying to get their piece of the pie. Some companies are going to do better than others, and that means you’ve got to be prepared to stand out. To do that, you’ll need a solid workforce — people who know what they’re doing and can help execute your grand plans for growth. So, while you’re figuring out how to scale, don’t forget about building up a team of talented folks to help you get there.

So, Is It Worth It?
The answer: probably! This business has a great foundation and it’s in a growing field, which is like finding a seed with the potential to grow into a mighty tree. But the key is knowing that, just like with any tree, you’ve got to plant it in the right soil, water it, and make sure the weather doesn’t wipe it out. If you can manage the transition well, handle the scaling, and deal with the competition, then there’s a lot of potential here for you to grow a solid, profitable business.

In short, buying this 3D printing business is like getting a ticket to a rollercoaster ride that could be thrilling — but only if you’re ready to hang on tight and make sure you don’t fly off the track. Sounds fun, right? Just make sure you’re up for the challenge, and that your seatbelt is securely fastened.

So, Let’s analyze the business based on the listing:

One-Person 3D Printing Business in Brevard County, FL

Business Overview

• Asking Price: $1,500,000
• Seller’s Discretionary Earnings (SDE): $460,086
• Gross Revenue: $967,910
• FF&E (Furniture, Fixtures, and Equipment): $390,000 (included in the asking price)
• Inventory: $2,000 (included in asking price)
• Rent: $1,683.33 per month
• Employees: 1 (Owner-operated)
• Established: 2004
• Location: Brevard County, FL (leased space with 2,000 sq. ft.)
• Lease Expiration: 10/7/2025
• Seller Financing: Available through SBA 7a loan pre-approval

Key Metrics & Valuation

• Cash Flow to Asking Price Ratio: The business generates $460,086 in Seller’s Discretionary Earnings (SDE) on an asking price of $1,500,000, which gives a cash flow multiple of 3.3x. This is within the typical range for a service-based business, especially one that operates in a niche market like 3D printing, where the multiple could range from 3x to 5x. The multiple of 3.3x is reasonable for a business with solid earnings and growth potential.
• Revenue and Profitability: The business generates $967,910 in gross revenue, with a SDE margin of approximately 47.5% ($460,086 SDE ÷ $967,910 revenue). This is an excellent margin, particularly for a business that operates with only one employee. The high margin suggests that the business is highly profitable relative to its revenue and is efficiently run.
• FF&E and Inventory: The $390,000 in FF&E includes specialized 3D printing equipment, which is essential to the business’s operations. The inventory value of $2,000 is relatively low but likely includes raw materials for 3D printing. The equipment includes several Stratasys Fortus 3D printers, which are industry-leading machines capable of printing large and complex parts. These assets significantly enhance the value of the business and are included in the asking price.

Business Model and Operations

• Service Offering: The company specializes in providing 3D printed tooling, jigs, fixtures, and other prototypes based on CAD drawings. The business targets clients who need high-quality, customized parts that would be difficult or costly to produce using traditional machining. The company also provides rapid prototyping services and can quickly adjust designs based on client feedback, making it a highly flexible operation.
• Technology and Equipment: The business operates several high-end Stratasys 3D printers, including:
• Stratasys Fortus 900mc (36x24x36 inches)
• Stratasys Fortus 360mc (16x14x16 inches)
• Stratasys Fortus 400mc (16x14x16 inches)
• Stratasys F170 (10x10x10 inches)
• These printers are capable of producing high-quality parts for a wide variety of industries, including automotive, aerospace, and manufacturing. The use of state-of-the-art industrial machines allows the company to offer fast turnaround times and high precision for clients, which adds significant value to its services.
• Customer Base: The business provides services for industries that require customized parts for prototypes and tooling. This includes sectors like automotive, aerospace, manufacturing, and other industries requiring specialized parts or prototypes for development and testing. The ability to handle complex surfaces and offer rapid prototyping is a key differentiator for the business.
• Solopreneur: The business is operated by one person, which allows for flexibility and a low overhead structure. However, this also means that the business is heavily reliant on the owner for its continued success. The new owner will need to assess the potential for scaling the business and whether additional staff or expertise is needed to grow operations.
• Location: The business is located in a leased 2,000 sq. ft. facility. The monthly rent of $1,683.33 is relatively low, which helps keep operating costs manageable. The lease runs until October 2025, offering the buyer stability in terms of location. The facility includes a small office and the necessary space for 3D printing operations.

Strengths

1. High Profit Margins: The business operates with a high SDE margin of 47.5%, which indicates excellent profitability. The fact that the business is run by a single individual, with minimal overhead, contributes to this strong margin.
2. Industry-Leading Equipment: The Stratasys Fortus 3D printers are among the best in the industry and allow the business to offer high-quality, complex parts with fast turnaround times. This state-of-the-art equipment is essential for maintaining a competitive edge in the rapidly growing 3D printing industry.
3. Solid Reputation and Customer Base: The business has built a strong reputation in the 3D printing sector, which is crucial in an industry where trust and quality are paramount. Clients in sectors like aerospace and automotive require precise, high-quality parts, and this business has established itself as a reliable provider of these services.
4. SBA Pre-Approved Financing: The business has been pre-approved for SBA 7a financing, which makes it easier for qualified buyers to acquire the business with favorable loan terms. The 10% down payment requirement ($150,000) is relatively low for a business of this scale, making it accessible to a wider pool of potential buyers.
5. Growth Potential: The 3D printing industry continues to grow rapidly, particularly in sectors like automotive, aerospace, and healthcare. The business has the potential to scale by adding more printing capacity, expanding its service offerings, or targeting new industries. There is also potential to grow the client base through increased marketing and outreach.
6. Support and Training: The owner is willing to stay on and provide training and support as needed, which is valuable for a smooth transition and continued success.

Risks and Considerations

1. Dependence on the Owner: The business is currently operated by one person, which means you’ll need to assess the current workload, staff requirements, and operational challenges associated with scaling the business. The business may not be easily transferable without additional staff or management support.
2. Inventory and Materials: The inventory is relatively small ($2,000), but the buyer should ensure that the raw materials required for 3D printing (e.g., filaments, resins) are readily available and sourced at competitive prices. You should also review supplier contracts and inventory management processes to ensure that there is no disruption to production.
3. Competition: While the business operates in a niche market, the 3D printing industry is becoming increasingly competitive. New entrants and larger companies may be able to offer similar services, which could place pressure on pricing and customer acquisition. You will need to consider how to maintain a competitive advantage, especially as 3D printing becomes more accessible.
4. Scaling the Business: Although the business has significant growth potential, you’ll need to invest in marketing, hiring additional staff, and expanding capacity to scale operations effectively. Managing growth without compromising quality and customer satisfaction will be key to long-term success.
5. Market Demand: The demand for custom tooling and prototyping services is subject to economic cycles, technological advancements, and industry-specific trends. You’ll need to assess the stability of the demand in the industries the business serves.

What do you think? Check it out and let me know!

About: Silverwave Deal Flow combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed.

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