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Business To Buy

International Nondestructive Testing Company

, Idaho
This company operates as a materials science and engineering company in the nondestructive testing (NDT) industry with a unique, proprietary testing technology for metals, referred to as Induced Positron Analysis® (IPA), and a unique testing technology for both metal and composite materials, referred to as Phase Contrast Analysis® (PCA). Each provides unprecedented inspection capabilities at detail levels that enable improved safety, increased reliability and lower costs for customers. Both technologies uniquely solve significant and costly customer issues beginning in the manufacturing stage throughout component service, and can eventually be used to predict remaining life, and address maintenance, surveillance and replacement planning issues that were previously left to chance or to highly conservative planned obsolescence.
The near-term revenue generation strategy is based on selling the IPA technology under license to customers using the company’s first-generation standard product, PS6100 (development completed in 2009). Additionally, the testing equipment can be customized to integrate into existing manufacturing or inspection environments as required, providing new levels of quality assurance and superior manufactured products. Examples for which no equivalent nondestructive inspection of material treatment processes exists today include peening, hole cold work, annealing, and plating processes. In manufacturing processes IPA can provide nondestructive verification of desired materials microstructure and uniformity, including measurement of induced cold working (peening, fastener hole expansion), hardness (without indentation), and detection of embrittlement. To establish an IPA solution, the company initially sells the hardware, then generates recurring revenues by leasing the system and charging system support fees. In the past 2 years, the company has sourced revenues from customers ranging from USAF, US Army, Pratt & Whitney, Moog, NSF, Kawasaki Heavy Industries, Engine Titanium Consortium. The company operates out of corporate offices with a small staff in a major metro market in the Northwest and two R&D/Testing Service Centers in the US and India. The estimated fair market value of the tangible and intangible assets is $1.25M

Financials

Price: $1,250,000
Gross Income: $534,000
Cash Flow: $105,000
FFE: $400,000
Inventory: $0
Real Estate Value: $1,000,000

About the Business

Office Reference ID: #50130.2
Year Established: 2001
Financing: majority recapitalization
Training: CEO will transition or remain with company
Facilities: Company operates in leased space co-located with major regional university for collaborative R&D. Sub-lease available from company at market friendly rates of $10/sf office and $20/sf laboratory with reasonable term.
Competition: NDT industry highly fragmented, yet stable but with minimal innovation. This company's patent pending technology initially complementary to existing NDA methods due to its unique sensitivity on a much smaller size scale. Barriers to entry are significant in time, cost and technical hurdles overcome for commercialization.
Growth: Immediate opportunity to advance this highly reliable technology to address an urgent commercial-ready automotive manufacturing application that will generate significant profitable revenue stream with an infusion of capital. Business can grow to $50M with application to one or two industries.
Business Listed By
Name: Meg Carlson
Company: Carlson Hall, dba The C&H Group
Phone: 2088530991

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