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Nuclear Services Co.

Status
Sold
Close Date
Client Number
A277
Executive Summary

This well established, rapidly growing company provides instrument calibration services and manufactures a line of proprietary testing instruments and components for the nuclear and commercial power industry. Approximately 70% of Company revenues are in nuclear services and sensors. The wide range of services and products are sold to local, national and increasingly to international accounts. Long-term contracts in the surging nuclear power industry will continue to provide a stable stream of income, as many customers list the Company as an approved vendor for existing and planned new plant starts. These contracts, along with new products are driving growth, which has seen gross revenue for the company increasing at an average of 30% per year for the last 5 years. A major global power company has recently asked this company to provide parts, consulting and to write procedures for its next generation power plants, which may significantly increase future revenues.

The expected continuation of demand for nuclear products and services, new products and services now in development and a marketing plan other than word of mouth for capturing market share in the largely untapped commercial calibration market offer a great opportunity for the buyer.

The owners will be available for a smooth transition for the new owners if needed. This acquisition opportunity is expected to attract interest from a variety of buyers, especially strategic and industry buyers.

Financial Information
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization

2009 projection is based on increases in year over year utility contracts in place and backlog orders as of 3/31/09.

Deal Structure
Price
Open to Offer
Company Assets

All the furniture, fixtures and equipment used in the business will be included in the sale free and clear of all liens. A list of major items is included in the full profile on this Company.

Also included in the price will be net working capital of $190,000. Net working capital is defined as accounts receivable and inventory less accounts payable.

Accounts Receivable: $200,000
Inventory: $20,000
Accounts Payable: $30,000
Net Working Capital: $190,000

At the closing, should the net working capital figure differ from the agreed upon amount, there will be a corresponding adjustment in the purchase price. Cash in the bank is specifically excluded from this sale and will be retained by the seller.

Other Information
Location
Northern Illinois
Ownership Type
S Corporation
Established
1991
Facilities

5,000 square feet industrial/other center

Employees
7

Hours of Operation: 5:30 AM to 4:30 PM, Some field service 24/7

Reason for Sale: Retirement/Minority partner has another business

Training: The majority owner will assist the buyer during a customary
transition period and may stay on with the company for an
agreeable term with compensation commensurate with duties
performed.