What is a Commercial Heat Treat Shop Worth?
While there is always a strong demand for commercial heat treat companies the pandemic has drastically reduced the number being sold over the past 18 months (the only one which comes to mind is the acquisition of Premier Thermal by Aalberts earlier this year). The reasons are many and varied and include the fact that face to face meetings have been difficult, sales figures for many have dropped making owners reluctant to sell and buyers facing the uncertainty of what future sales will be are equally as cautious.
With that backdrop we mention a small commercial heat treater in the USA which recently went on the market. Located in Southern California the company dates back to 1942 with the current owner purchasing it in 2007. The 15 person firm specializes in small high volume parts which are processed in rotary retort and batch IQ furnaces. While sales have declined slightly over the past 4 years and now stand at $1.755 million in 2020 cash flow is respectable at $459,000 USD. The end result is that the asking price is $1.95 million USD which is about where it should be.
“The Monty Heat Treat News” has no affiliation whatever with this company and is not involved in the sales process. Our interest begins and ends with the fact that this gives a good indication about what a profitable commercial heat treat is worth.
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