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Sale of a company for the wholesale sale of rolled metal with a 15-year history and its own production – for further revitalization

Operating enterpriseSmall business (up to 1 million EUR)

Sale of 100% stake in LLC.

Sold

Price: 2 300 €
Region:
Country: Czech republic

For a potential buyer, we provide a full range of free consulting services related to the acquisition of these assets. Our provisions and services are paid by a Czech seller.

General characteristics of the company for sale

The company for sale has a 15-year history of work in the wholesale market for the sale of rolled metal products in the Czech Republic (since 2001), and also has its own production in the city of Pardubice.

The main metallurgical material sold:

  • Hot-rolled flat products
  • Cold-rolled flat products
  • Rolled sheet hot rolled with grooving lentils, diamond
  • Rolled sheet galvanized in rolls
  • Hot-rolled profile steel
  • Rolled wire, corrugated wire and welded wire mesh
  • Flat rods

Production and services:

  • Manufacture of welded wire mesh from corrugated reinforcing steel
  • Autogenic and plasma cutting of precise parts
  • Sheet Metal Cutting on CNC Laser Machines
  • Sheet metal cutting at the CNC punching center
  • Sheet metal cutting
  • Sheet bending on CNC bending presses
  • Welding
  • Shot blasting, galvanizing

Legal form: s.r.o. – společnost s ručením omezeným (analogue of LLC)
Owners of shares in LLC: Czech individual – 90%, Czech legal entity – 10%
Location: Pardubice, Pardubice region.
Region of activity: Czech Republic, Poland, Germany
The quality management system of the enterprise is certified for compliance with the requirements of the international standard ISO 9001:2008.
Number of employees: 42 of them are 6 senior and middle managers.

History

The company is owned by 4 Czech individuals, each of whom has a 25% stake in its share capital.

Since 2001, the company for sale specializes in wholesale trade in metallurgical rolled products and materials and for 15 years has been among the medium-sized Czech suppliers in its sector.

In 2007, its own production was opened in the city of Pardubice, which focuses on the cutting of curly parts in accordance with the requirements of customers. The quality and reliability of the products is evidenced by the recorded constantly growing volume of production in 2007-2014.

In the course of its activities, the company has always been distinguished by the ability to flexibly adapt to changes in the market and the growing requirements of customers. The company currently has a significant portfolio of regular customers from various industrial sectors and the construction field.

Since 2006, the company has been a permanent active member of the Association of Rolled Metal Wholesalers of the Czech Republic.

From 2008 to 2015, the company supplied rolled metal products first to Germany, and then to Slovakia and Poland.

With 32 employees and an annual sales turnover of about CZK 350 million, the company belongs to the category of medium-sized regional companies in the Czech Republic.

Location

The city of Pradubice was founded in 1295, 90 thousand inhabitants. 120 km from Prague mainly along the D11 motorway. To the border with Poland – 50 km, with Germany – 230 km.

Due to its strategic location in the center of Europe, the company is able to quickly respond to customer requests with the lowest price of transportation costs.

Competitive advantages

A significant competitive advantage of the company is its own production and the presence of 9 rolled metal products in 6 Czech regions, which allows the company to be as close to the consumer as possible.

The presence of our own production equipped with Czech and Western European equipment allows us to respond flexibly to individual customer requirements.

For 11 years of its activity in the wholesale market of the Czech Republic for the sale of rolled metal, the company has created good partnerships with a number of key suppliers who provide it with fairly good prices for the products supplied, and also has regular customers who provide fairly stable sales volumes of products.

The company for sale has quite noticeable positions in the regional market of the Pardubice region and the central Czech Republic.

General economic characteristics of the company

Average turnover for the last 5 years: up to CZK 350,000,000

Currently, the company's economy is unprofitable. The loss for 2015 amounted to 10.5 million kroons. The total amount of debt is about 33,000,000 CZK. Basically, these are overdue debts against banks and suppliers.

On the other hand, the company has quite large assets in the form of receivables of claim for a total amount of 15.3 million kroons, as well as assets in the form of real estate in the amount of about 14.2 million kroons (pledged to banks)

Total assets: approx. 29.5 million kroons

Total liabilities: CZK 33.0 million

More detailed information about the economy of the company being sold, financial statements, legal documents – at the request of a potential buyer.

The format of the transaction and the activities of the enterprise after the change of ownership

The subject of the sale is 100% of the shares in a limited liability company (s.r.o.)

Price: by agreement of the parties.

The following options for the sale of the company may be considered:

  1. The new owner, buying the company for a small amount, will further repay the company's debts at the expense of internal reserves and in the process of revitalizing the company.
  2. From the amount received for the sale of shares in the company, the existing debts of the company will be partially or fully repaid and the company will pass to the new owners "net" without debts or with significantly less debt.

The top management of the company is ready to continue its work after the change of ownership, but the most optimal seller seems to be a change in the company's management after its acquisition by the new owner. In this case, the current management of the company is ready to assist the new management (if it is interested) for a transitional period under a separate agreement with the new owner.

According to the estimates of the current owners and management of the enterprise, a possible change of ownership will not adversely affect the mood of engineering and technical specialists and the number of employees of the enterprise.

The purity of the transaction, the absence of hidden financial and legal obligations is guaranteed by the personal responsibility of the owners, the process of gradual transfer of management in accordance with the agreement, legal mechanisms and norms provided for in the Czech Republic.

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