WG Montgomery Ltd (The Monty.com) is the only company in the world that specializes in putting buyers and sellers of commercial heat treat shops together. We have been doing this for a number of years, have an impressive track record and will GUARANTEE that we can send prospective, serious buyers your way.

Several commonly asked questions are below.

If you are interested in knowing more about what a Commercial Heat Treat Shop is worth click here.  Do you want to sell your Heat Treat Shop? Contact us.

What Is A Commercial Heat Treat Shop Worth?

We're going to have a rather Simplistic look at what a commercial heat treat shop is worth and offer you a very cost effective way of getting a very precise idea of what your shop is worth. Right off the bat, the worth of a Heat Treat shop or any business for that matter is based upon performance. A business losing money is basically worthless, a business making lots of money is worth a great deal. So we're starting off with the basic premise that the value of a business is based upon profitability. When it comes to commercial heat treaters, the general rule of thumb is that to a potential buyer it is worth somewhere between 3 and 6 times EBIDTA (Earnings before Interest, Depreciation, Taxes and Amortization). Keep in mind though that this multiple is based upon an average profitability over the past 4 or 5 years.

From this starting point we throw in a few other factors such as capacity. A shop running at less than full capacity (but still making money) is surprisingly worth more than a shop running at full capacity. Logically this makes sense. A new owner can increase sales and hence profitability without having to make a further investment into the business in the form of more equipment.

Geography always is an issue. A shop in a growing healthy area seeing an increase in manufacturing will always be worth more than an operation in an area seeing stagnant growth. From our own experience, I can tell you that we get a lot of requests for commercial shops in the US South east, an area seeing high growth and virtually no requests for the US Northeast, an area seeing slow or no growth in manufacturing.

Capabilities are again another factor that always goes into the mix. Processes that are growing such as vacuum heat treating, vacuum carburizing and Ion Nitriding will generally appeal to potential buyer's far more than very basic stress relieving as an example.

Management. While the large HT chains might have the ability to drop in new management to replace the outgoing owners, I have yet to see a case where having the original management stay for some period of time was not an enormous plus.

Customers. Show me a shop (and I've seen this in the past) where 60% of the work is coming from one customer with no long term contract and I will show you an operation that is unsaleable. The best product mix would be a number of medium sized customers (none amounting to more than 10% of total sales) involved in a number of different industries such as aerospace and automotive.

Commonly Asked Questions

1) Is my inquiry confidential? 100% guaranteed! In all cases both potential buyer, seller and WG Montgomery Ltd. will be required to sign a non-disclosure agreement before the 2 parties are put in touch.

2) Is there a fee involved? We charge a modest finders fee for our services. In some cases this is paid by the buyer, in other cases by the vendor.

3) Will negotiations be conducted through WG Montgomery Ltd? Not unless you wish it. Generally we put buyers and sellers together but we are not involved in the negotiations.

4) How would WG Montgomery Ltd. go about finding a buyer for our operation? We would first approach a number of potential buyers that we have worked with in the past. In conjunction with this we would also put a description of your shop on the site with an overview of your capabilities but not enough details to identify the shop.

5) As a potential buyer what if I don't see what I'm looking for on your site? Please let us know what you are looking for and we'll see what we can do. We would like to stress that we are aware of a few shops for sale which are not mentioned on our site.

6) For more details about our commission structure please let us know using our Feedback Form.