Field Notes: Custom Fabrication Company

A NY-Based 30-Year Old Profitable Business with Room to Grow?

Pete Weishaupt
3 min readMay 13, 2024

Live from New York! It’s a custom fabrication business! This was a little bit out of my AOR, but something about it piqued my interest. It could be a solid opportunity for the right acquisition entrepreneur — established operations, high margins, and the potential for growth. It’s a profitable, enduring business; but the owner willing to stay on as salaried strikes me as a bit weird. Why? And for how long? Either way, the asking price appears justified based on the company’s profitability, market position, and growth trajectory. Let’s take a look:

Financial Overview

  • Asking Price: $8,950,000
  • Gross Revenue: $6,400,000
  • EBITDA: $1,780,000
  • Inventory: $435,000 (included in asking price)
  • Real Estate: $6,500,000 (not included in asking price)
  • Established: 1993

Business Operations

  • Location: Queens County, NY
  • Industry: Custom fabrication focusing on composites in niche industries
  • Employees: 17
  • Facilities: 16,500 sq ft main fabrication facility, plus a 9,700 sq ft leased warehouse and a 2,000 sq ft yard


Valuation and Price Justification:

  • The asking price of $8,950,000 is about 5 times EBITDA, which seems reasonable.
  • The high gross revenue and significant EBITDA highlight a profitable operation with efficient processes and a mature customer base.
  • Real estate, valued at $6,500,000, is not included in the asking price but could be purchased. If you don’t purchase it, can you lease it?


  • Established reputation in a niche industry with limited competition, which enhances market stability and pricing power.
  • The business has demonstrated robust growth, reporting a 20% increase year-over-year. Is this just a ‘pandemic’ bump, or is it sustainable.
  • A diverse customer base across various industries, including healthcare and commercial, provides multiple revenue streams and reduces dependency on any single market segment. But how diverse is it really? Look deep at customer concentration.

Risks and Considerations:

  • The reliance on the current owner for business operations and relationships could pose a transition risk; however, the owner’s willingness to stay post-sale mitigates this concern somewhat, while raising a new concern of why? This is why I prefer to see ‘Owner Retiring’ in the listing, but maybe it’s not a big deal for everyone?
  • As the real estate is a separate purchase, the total capital required could be significant, impacting the return on investment calculations. Can you get a lease? Is the business relocatable?

Opportunities for Growth:

  • There are evident growth opportunities in the healthcare sector, likely driven by increasing demand for customized composite products.
  • Expanding the geographic footprint beyond the US and Canada could open new markets and customer segments.
  • Further digitization and process optimization could enhance margins and scalability.

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

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About: Silverwave Field Notes 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.