Mechanical Engineering Services Company For Sale

[SunbeltAsiaAdvisor]

An opportunity has arisen to acquire a well established Mechanical Engineering Services company based in Pattaya. The business was set up by a European mechanical engineer in 2006, with the original business idea being engineering design services. However, right from the first order the business became involved in sourcing & complete machinery assembly. Nowadays, pure design service is only a very small part of the business as the clients want to benefit from the extensive sourcing know-how (based on a proven supplier network) to save expenses in the complete process: design – production – assembly – shipping.

The owner has another business that is demanding his full attention and is now prepared to part with this company. The business is currently operating from an office based on the Eastern Seaboard. Overheads are kept to a minimum with a monthly rent of 9,000 Baht on a one year renewable lease. There are currently 5 full-time Thai employees with a total monthly payroll of 75,000 Baht. Company stock is located at the subcontractors where the machine assembly is carried out. Actual stock value is approximately 1.1 million Baht, although the exact value depends upon work-in-progress and orders-in-hand. Company inventory consists mainly of office equipment and PC's, including three fully licensed CAD software products with a purchase price of 756,000 Baht.

Included in the sale price is a limited company, with availability for one work permit. In 2010, total sales reached 20,740,885 Baht and the business has numerous orders in hand for the current year, mainly as a result of the marketing efforts of the company in sourcing additional clients during the economic downturn in 2009/10. The company is growing and is reaching its capacity limit. Therefore additional personnel and organisation is needed to maintain growth. One advantage for the future outlook of the business is that cost pressure in Europe and other countries is pushing more and more potential customers towards Asian based engineering service providers. The company can be easily relocated if needed, as few clients actually visit the office. The sales price is based on actual figures and includes all orders in hand.

Asking Price inclusive of OEM Machinery (and inclusive of all Inventory and Stock): 20,500,000 Baht

Asking Price exclusive of OEM Machinery (and inclusive of all Inventory and Stock): 13,500,000 Baht

BKK14197

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